Titanium dioxide prices rise again! Led by the Lomon Group, is an industry storm on the horizon?

Starting from March 21, 2025, Lomon Group has led a new round of titanium dioxide price adjustments, with prices being raised simultaneously in both domestic and international markets, quietly forming an industry-wide price increase storm. Behind this adjustment are intertwined factors such as rising costs, international linkage, and the transmission effect of the industrial chain.

Longbai Group announced that starting from March 21, the sales price of all models of titanium dioxide will be increased by 500 yuan per ton in the domestic market, and the international market will also see a synchronous increase of 70 USD per ton. This is already the third round of concentrated price increases since 2025. This price adjustment not only covers the global customer base but also highlights the strong response strategy of leading enterprises when facing cost pressures, setting a new benchmark for the subsequent industry price system. It is noteworthy that companies such as Guangxi Lanxing and Guangdong Huiyun Titanium Industry have followed suit, issuing price increase notices of the same magnitude, forming a coordinated trend across the industry. According to Masterbatch Industry Network, this collective action not only reflects a profound change in the supply and demand relationship of the market but also indicates that upstream and downstream enterprises in the industrial chain need to prepare for long-term cost pressure.

Titanium concentrate prices continue to consolidate at high levels, with the price of 46% grade ore in Panzhihua remaining in the range of 2080-2150 yuan/ton. Sulfuric acid prices have also risen to a high of 650-671 yuan/ton, an increase of over 30% compared to the same period last year. The dual constraints of mine shutdowns in Yunnan and the control of raw ore sales by Pangang have led to a continuous tightening of titanium ore supply. These factors combined have caused the unit production cost of titanium dioxide to rise beyond the threshold that companies can bear. The "triple hit" on production costs is reshaping the industry landscape, with raw material price increases exceeding the average of the past three years. Stricter environmental policies have further limited the capacity of small and medium-sized mining enterprises. Currently, the proportion of raw material costs for titanium dioxide companies has exceeded 60%, far surpassing the warning line for healthy industry operations, forcing companies to pass on these costs through pricing to maintain their survival.

International chemical giant Chemours announced a price increase plan to be launched in April, which has become a key external factor driving domestic companies to make adjustments in advance. A price resonance has formed in the global titanium dioxide market, with China's product export FOB price breaking through the $2800/ton mark. This cross-border linkage not only highlights the close interconnection of the global supply chain but also creates opportunities for Chinese companies to enhance their voice in the international market. It is noteworthy that China's titanium dioxide exports have maintained a growth rate of over 15% for three consecutive months. International buyers are beginning to accept the pricing strategies of Chinese companies, thanks to the quality improvements brought about by upgrades in domestic production processes.

The wave of price increases is rapidly spreading along the industrial chain, with supporting chemicals such as barium sulfate already seeing a follow-up increase of 200 yuan per ton, hitting the coatings industry first. Leading companies represented by Nippon Paint and Oriental Yuhong have seen their raw material costs surge to over 75%. This pressure may force downstream enterprises to initiate product upgrades or seek alternative solutions, thereby triggering a structural adjustment in the entire chemical system. Terminal sectors such as architectural coatings and plastic products are facing severe challenges. Industry calculations show that a 500 yuan per ton increase in titanium dioxide will raise the production cost of latex paint by about 1.2 yuan per liter. If the price transmission is not smooth, small and medium-sized coating companies may face a new round of reshuffling.

Leading companies build up their moats through large-scale procurement and technological upgrades. The proportion of chlorination process in Lomon Group has increased to 65%, with a 12% reduction in unit energy consumption. This technological advantage allows it to lead in cost control, enabling it to respond more calmly to market fluctuations. Meanwhile, small and medium-sized enterprises relying on the sulfuric acid process are facing a survival crisis as their marginal profits approach zero. The trend of increasing industry concentration is becoming more evident, with the market share of the top five companies exceeding 58%, a 7 percentage point increase from the same period last year. This Matthew effect is prompting more companies to shift towards the development of high-value-added products, making niche areas such as nanoscale titanium dioxide and new energy-specific products the new battlegrounds, driving the industry towards a technology-driven transformation.

In the short term, the downward space for titanium dioxide prices has been sealed. Multiple institutions predict that prices in Q2 2025 will maintain a stable and positive trend. The tight situation of titanium ore resources is expected to last at least until the third quarter, while the continuous release of new demands such as coatings for new energy vehicles and photovoltaic back sheets has formed a dual support pattern for supply and demand. It is expected that there will be 1-2 more price adjustment windows within the year. In the long run, green production will become the core competitiveness. The "Guidelines for Carbon Emission Accounting in the Titanium Dioxide Industry" is about to be released, and the environmental advantages of the chlorination process will become even more prominent. At the same time, the increase in demand brought by the construction boom in overseas emerging markets may push China's titanium dioxide exports beyond the 4 million ton mark, reshaping the global industrial landscape.