By mid-August, the domestic titanium dioxide (TiO₂) market finally showed signs of stabilization. After nearly a year of prolonged weakness, industry sentiment has gradually improved. Several companies took the lead in raising prices, boosting overall market activity. As a supplier in the industry, we analyze the market data and recent developments to help clients understand the logic behind this price movement.
1. Price Trend: From Decline to Rebound, Signals of Increase
On August 18, industry leader Lomon Billions announced a domestic price increase of RMB 500/ton and an export adjustment of USD 70/ton. Previously, Taihai Technology raised its prices by RMB 800/ton domestically and USD 80/ton internationally, marking a turning point for the industry. Meanwhile, some domestic producers suspended order-taking or paused new contracts. After months of continuous decline, the market has finally entered a rising phase.
This indicates that the titanium dioxide market is stabilizing, with signs of a rebound from the bottom.
2. Supporting Factors: Supply Contraction and Cost Pressure
This stabilization is driven by multiple factors:
Supply-side contraction: Many producers are operating at low capacity, leading to a significant reduction in effective supply. Even before the price hikes, supply chains had already tightened, and some small- to mid-sized factories experienced temporary shutdowns.
Cost-side pressure: Titanium concentrate prices have seen only limited declines, while sulfuric acid and sulfur feedstocks continue to show upward trends, keeping production costs high.
Demand expectations improving: As the “Golden September, Silver October” peak season approaches, downstream industries such as coatings and plastics are entering restocking cycles.
Export changes: After peaking in Q1 2025, exports declined in Q2. With inventory drawdowns, seasonal demand, and bottoming prices, the peak procurement season arrived early in mid-August.
3. Market Outlook: Short-Term Stability, Medium-Term Demand-Driven
Short-term (August–early September): Supported by costs and coordinated price actions among producers, prices are expected to remain stable to upward, with downstream restocking demand gradually materializing.
Medium-term (late September–October peak season): If downstream demand recovers as expected, the uptrend could extend and strengthen; if demand falls short, partial corrections may occur.
Long-term (Q4): Continued monitoring of export recovery, raw material trends, and plant operating rates will be critical in determining whether a new bull cycle emerges.
4. Our Recommendations
For downstream customers, the market is now at a key stage of recovery from the bottom. We recommend:
Closely monitoring price adjustments by leading producers and balancing procurement with existing orders.
Securing part of the supply in advance to reduce risks from cost fluctuations, while flexibly adjusting restocking pace based on demand cycles.
Conclusion
Overall, the August price increase serves more as a signal of market recovery from the bottom. It reflects both supply and cost pressures, as well as expectations for peak-season demand. We will continue to provide clients with stable supply and reliable supply chain support, helping the industry move forward steadily into a new market cycle.
Post time: Aug-19-2025
