China's titanium dioxide (TiO2) industry has seen two rounds of collective price increases within a month, driven by surging sulfur costs linked to Middle East tensions. As China imports 56.2% of its sulfur from the region, the conflict has disrupted supply chains and raised production costs. Combined with weak domestic demand and mounting anti-dumping investigations abroad, analysts warn that these pressures will force more Chinese TiO2 producers to expand overseas through acquisitions or new capacity.
Price surge and cost drivers
On March 18, 2026, Longbai Group announced a price hike of RMB 500 per tonne in the domestic market and USD 100 per tonne internationally for its Xuelian brand TiO2. Other producers including Huiyun Titanium, Kunming Donghao, and Shandong Xianghai quickly followed with identical increases. This marks the second round of collective price adjustments within a month, following a joint hike by over 20 TiO2 firms in late February and early March. The price rises are primarily attributed to soaring sulfur costs. According to data from commodity pricing platform Shengyi She, as of March 17, sulfur benchmark prices reached RMB 4,616.67 per tonne, up 18% from the start of the month and 77% year-on-year. Sulfuric acid prices surged to RMB 1,185 per tonne, up 12.06% month-to-date and 83% year-on-year.
Supply-chain impact
Sulfur, a byproduct of oil and gas refining, is essential for sulfuric acid production used in TiO2 manufacturing. Recent Middle East conflict escalation and tensions in the Strait of Hormuz have directly disrupted global sulfur supply chains, pushing prices higher. Huachuang Securities research shows that raw material costs account for over 60% of total TiO2 production costs, leaving many producers facing negative margins.
Internal challenges: weak demand and losses
Despite two rounds of price hikes this month, current TiO2 prices remain below year-ago levels due to sluggish downstream demand. The real estate and construction sectors, which drive TiO2 consumption through coatings and plastic profiles, remain weak. Companies like Annada and Jinpu Titanium reported losses of RMB 65-103 million and RMB 428-489 million respectively in 2025. Some firms have halted production to stem losses: US-based Tronox permanently closed its TiO2 facility in Fuzhou, China, while Jinpu Titanium announced the shutdown of its wholly-owned subsidiary Xuzhou Titanium White.
External pressures: anti-dumping investigations
On March 3, 2026, the UK Trade Remedies Authority initiated an anti-dumping investigation into Chinese rutile TiO2, following similar actions by the EU, India, Brazil, and Saudi Arabia. These trade barriers add to the challenges for Chinese exporters, who already face oversupply and margin compression at home.
What buyers should watch
Chinese TiO2 producers are increasingly looking overseas to mitigate risks. CITIC Construction & Investment notes that Longbai Group's acquisition of Venator's UK plant offers a model for "acquiring market access." Tianfeng Securities emphasizes that cost control, technology, and global expansion capabilities will determine future competitiveness. Importers and distributors should monitor further price adjustments, potential supply disruptions from Middle East sulfur flows, and the outcome of anti-dumping cases that could reshape trade flows.
China sourcing context
China remains the world's largest TiO2 producer and exporter, but the current environment is forcing structural change. With domestic demand stagnant and trade barriers rising, leading firms are pursuing overseas production bases and mergers. This trend may reduce China's export volumes in the short term while increasing the global footprint of Chinese-owned capacity. Buyers should evaluate supply security and consider diversifying sources amid geopolitical uncertainty.
Source: Read the original report | Published: March 18, 2026