Behind The Collective Price Hike Of Titanium Dioxide Enterprises

Recently, titanium dioxide leader Longbai Group (002601.SZ) issued a price adjustment notice, announcing that its domestic titanium dioxide prices would be raised by 1,000 yuan per ton and export prices by 150 U.S. dollars per ton. More than ten companies, including Huiyun Titanium Industry (300891.SZ), Lubei Chemical (600727.SH), and Jinhai Titanium Industry (000545.SZ), have followed suit with price hikes of broadly the same magnitude.

According to an interview conducted by the reporter from China Business Journal with several titanium dioxide companies, this round of price adjustments is mainly driven by the significant rise in the prices of raw materials such as sulfur and sulfuric acid. Since June, the prices of sulfur and sulfuric acid have surged, leading to an increase in production costs for titanium dioxide and other related chemical products.

Qi Yu, an analyst at Toodudu, told reporters that titanium dioxide producers are currently facing significant pressure on production costs due to persistently high sulfur and sulfuric acid prices, compounded by rising ocean freight rates, which has sharply increased operational strain on the production side and strengthened the industry's willingness to raise prices. However, as the market is currently in the traditional off-season for demand, trading activity remains weak, intensifying the tug-of-war between supply and demand, and actual titanium dioxide transactions are mostly negotiated on an order-by-order basis.

According to data from Longzhong Information, as of June 8, the ex-warehouse price for granular sulfur at Yangtze River ports was RMB 9,600/ton, up RMB 2,120/ton from early June, an increase of 28.34%; up RMB 5,600/ton from the beginning of the year, an increase of 140%; and up RMB 6,990/ton year on year, an increase of 267.82%. The sulfuric acid market also strengthened simultaneously. On the same day, the mainstream delivered price of sulfuric acid in Hubei was RMB 1,780/ton, up RMB 695/ton from the beginning of the year, an increase of 64%; and up RMB 1,110/ton year on year, an increase of 165.67%.

Looking at the trend in 2026, titanium dioxide price hikes ran throughout the first half of the year. In early March, LB Group took the lead in raising prices by RMB 500 per ton, kicking off the first round of price increases for the year. In mid- and late March, the market saw two more rounds of collective price hikes, with cumulative increases reaching RMB 2,000 per ton in a single month. Entering April, driven by the continued rise in sulfuric acid prices, titanium dioxide prices climbed again.

According to data from SunSirs, as of June 9, the mainstream domestic quotation for rutile titanium dioxide was approximately RMB 16,720/ton, a cumulative increase of 20.29% compared with RMB 13,900/ton on March 1.

“In March and April, we have adjusted prices multiple times. The core reason is the rise in sulfuric acid prices; without raising prices, it is difficult to absorb the costs,” said an executive at a titanium dioxide company. He stated bluntly that the titanium dioxide industry’s profits were already under pressure in 2025, and with upstream raw material prices surging sharply in 2026, each round of price increases by companies is a passive response rather than an attempt to actively drive up the market.

Qi Yu added that the recent price increase of titanium dioxide is entirely driven by the cost side. In the short term, the prices of sulfur and sulfuric acid are unlikely to decrease, and the industry's high-cost, high-price operating status may continue.