Daily review: Increased Production Cuts and Maintenance of Rutile Type Keep Titanium Dioxide Market Oversupplied

Market Overview: On July 3rd, with increased production cuts and maintenance, the supply-demand imbalance in the titanium dioxide market remains unchanged. The mainstream quotation for sulfuric acid-based rutile titanium dioxide is 14,100-17,200 yuan/ton, with an average market price of 15,729 yuan/ton, remaining stable compared to the previous working day.

Market analysis: Recently, the number of titanium dioxide producers cutting output or conducting maintenance shutdowns has increased markedly. A few plants in the market are undergoing maintenance, and the industry operating rate has edged down slightly. Some companies are carrying out annual routine maintenance as part of their regular production schedules, while others have been forced to reduce operating rates due to pressure from raw material costs or sluggish shipments. Affected by raw material costs and supply, some producers have cut output, but the overall market operating rate remains high. Although more companies are reducing production, weak demand is even more pronounced, and the pattern of supply far exceeding demand has not changed. At present, inventories at most titanium dioxide producers are trending upward, and shipment pressure across the market is gradually increasing. Inventory accumulation remains an important factor suppressing any price rebound, and inventory pressure at some companies is already approaching a critical level.

**Market Outlook:** In the short term, the increasing number of enterprises undergoing production cuts and maintenance will lead to some contraction on the supply side, but weak demand remains the stronger force, and the oversupply pattern is unlikely to be fundamentally reversed in the near term. It is estimated that tomorrow’s average market price of sulfate-process rutile titanium dioxide will be around **RMB 15,729/ton**, with the negotiated price fluctuation range likely to be about **RMB 300–500/ton**. The actual transaction price will mainly be subject to individual negotiation based on order volume and manufacturers’ inventory levels.