Summary：
Titanium dioxide faces low prices, rising costs (titanium concentrate, sulfuric acid) and EU anti-dumping impacts. Environmental policies push chloride process adoption; supply chains shift regionally. Alerts for cost control, compliance and market diversification.
I. Price and Supply Chain Dynamics
1. Persistent Low Price Volatility and Intensifying Cost Pressures
Latest Update: On July 13, Jiangsu Nantong Zhonghe Chemical quoted rutile titanium dioxide at ¥13,000/ton, stable but down ~10% from May prices. Titanium concentrate prices remain elevated due to the South African railway crisis, with Panzhihua concentrate (TiO₂≥46%) hitting ¥2,216/ton (up 24% YoY). Sulfuric acid prices surged to ¥416/ton for 98% concentrated acid (up 20.8% YoY), driven by peak fertilizer demand and plant maintenance.
Industry Trend: Cost pressures are forcing SMEs to exit, while leaders like Lomon Billions (60% mineral self-sufficiency) maintain margins. Chloride process adoption rose to 39%, yet single-line capacity lags globally (100k tons/yr domestically vs. 150k tons/yr internationally).
Practitioner Alerts:
• Producers: Initiate long-term titanium concentrate procurement and hedge price risks via futures; monitor South African railway recovery.
• Traders: Reduce spot inventories (current turnover >45 days) to ≤30-day safety levels amid July-August off-season price risks.
• R&D: Accelerate chloride-process catalyst localization; current domestic catalysts have 30% shorter lifespans than imports and require academic collaboration.
II. Industry Trends and Strategic Alerts
1. Environmental Policies Reshape Competitive Landscape
Latest Update: The Ministry of Ecology implemented the Titanium Dioxide Carbon Emission Standard on July 1, mandating 55% lower carbon intensity for chloride processes vs. sulfate methods. 43% of sulfate-process capacity faces shutdowns.
Industry Trend: Zero-carbon electric smelting adoption may reach 60% by 2025. Yunnan Baofeng Energy’s "PV + Chloride Process" project slashes carbon footprint to 1.2 tons CO₂/ton, 62% below industry average.
Practitioner Alerts:
• Cost Control: Increase green power procurement to ≥50% by 2026 to comply with EU carbon tariffs.
• Compliance: Audit packaging materials (e.g., droppers, label inks) and prioritize suppliers certified for food-contact safety.
2. Global Supply Chain Deepens Strategic Competition
Latest Update: India’s March titanium dioxide imports surged 61.34% MoM, with 83.1% sourced from China. Post-anti-dumping duties, Malaysian and Australian suppliers gained share.
Industry Trend: Global supply chains emphasize regionalization + technical barriers. The U.S. leverages SSAP sustainability certification to retain Chinese market share, while Brazil disrupts Southeast Asia via cost advantages.
Practitioner Alerts:
• Market Strategy: Ramp up shipments to India before anti-dumping duties take effect (March 2025); pivot to Africa and the Middle East.
• Risk Hedging: Use financial tools (e.g., RMB forward settlements) to lock export profits amid currency volatility (RMB depreciated 5.2% against USD since Jan 2025).
More information can be found at CCM Titanium Dioxide China Monthly Report.
About CCM:
CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.
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