Titanium Dioxide Prices Rise Three Times in March; Sulfur and Sulfuric Acid Market Analysis Included (March 23–27)

In late March, the titanium dioxide market witnessed a highly unexpected turn of events. The LB Group issued three consecutive price hike notices during the month—a rare occurrence in the last two decades—resulting in a cumulative increase of 2,000 RMB per ton. In response, the domestic market also saw three waves of price increases. As of March 27, more than twenty manufacturers had successively issued price hike notices. The primary reasons driving this sustained upward trend in prices are twofold: the supply side holds a substantial backlog of orders, and the prices of key raw materials—sulfur and sulfuric acid—remain consistently firm.

Producing one ton of titanium dioxide requires approximately four tons of sulfuric acid or 1.3 tons of sulfur. The sulfuric acid used in titanium dioxide production is primarily derived from three sources: sulfur-based acid production, smelter-based acid production, and pyrite-based acid production. In 2025, global sulfuric acid consumption is projected to reach approximately 302 million tons, with sulfur-based acid accounting for 59% of this total. China's sulfuric acid consumption in 2025 is estimated at around 110 million tons—representing 36.4% of global consumption—firmly establishing the country as a major consumer of sulfuric acid. Of this 110 million tons, 43% is derived from smelter-based acid and 39% from sulfur-based acid; pyrite-based acid accounts for a smaller share, and its market share is currently shrinking year by year.

While the production cost of smelter-based acid is significantly lower than that of sulfur-based acid—and production volumes are substantial—it still cannot fully replace sulfur-based acid for three key reasons:

First, its production is inextricably linked to metal smelting operations; consequently, there is often a time lag between production output and downstream demand, resulting in intermittent gaps in supply.

Second, major production hubs for smelter-based acid are typically located within mining regions. Furthermore—given that its unit price is generally low and it is classified as a hazardous chemical—it has a limited transportation radius and incurs high freight costs, making it relatively difficult to integrate with the geographical locations of titanium dioxide manufacturers, thereby negating its cost advantages.

Third, it tends to contain relatively higher levels of impurities, rendering it unsuitable for high-end applications without further processing; consequently, the costs associated with purification are substantial. In contrast, the primary advantage of sulfur-based acid lies in the convenience of establishing production facilities in close proximity to end-users; moreover, sulfur is not classified as a hazardous chemical, facilitating easier transportation and resulting in lower freight costs. China produces an average of approximately 11 million tons of sulfur annually, accounting for 16% of the global total; however, with an average annual consumption of around 21 million tons, the country maintains a relatively high reliance on imports. The geopolitical situation in the Middle East continues to exert a certain influence on the global sulfur supply; as long as this situation persists, the cost support underpinning titanium dioxide prices will remain firmly in place and robust.

In reality, the prices of raw materials—sulfur and sulfuric acid—have been exhibiting an uncontrollably strong upward trend for quite some time. This persistent cost pressure has placed immense strain on numerous titanium dioxide manufacturers. Consequently, they have turned their hopes toward a potential decline in the price of another key raw material—titanium ore—as a means to alleviate this pressure. Driven by this intense downward-pressure sentiment, titanium ore prices have indeed softened slightly; however, this has done little to actually lower titanium dioxide production costs. Instead, the profit compensation derived from the byproduct—ferrous sulfate—has played a pivotal role in offsetting costs. The only caveat is that, in certain regions, manufacturers unable to secure sufficient supplies of sulfur and sulfuric acid have been forced to reduce their operating rates, resulting in a slight reduction in the overall output of ferrous sulfate.

In previous years, the titanium dioxide market was predominantly characterized by prolonged sluggishness and weakness, with trading activities generally following a downward trend. Now, however, manufacturers are orchestrating such a distinct and forceful price rally that market participants must shift their mindset to align with an upward-trending market strategy. Furthermore, a major upward trend in pricing has clearly taken shape. Even market participants who previously engaged in minimal interaction are now increasing their inquiries—a clear indication that spot supplies in the market are tightening and that instances of buyers actively scrambling to locate inventory are becoming increasingly common.

Indeed, recent price fluctuations in the titanium dioxide market have been relatively volatile—primarily due to the surprising frequency and magnitude of the price hikes. Amidst this overarching upward trend, several distinct characteristics have emerged within the trading market:

1. A bullish outlook for the future market, leading suppliers to hold back and refrain from rushing to ship out inventory;

2. A dwindling supply of low-priced goods, resulting in frequent instances where scarce spot inventory commands a premium;

3. The excessive frequency of price hikes, leading to a significant shortening of the validity periods for price quotes;

4. An increasing prevalence of price increases, the suspension of order-taking (order freezes), and long queues for shipment fulfillment.

Given this confluence of factors, market participants—particularly buyers—must adjust their procurement strategies with urgency, making swift decisions and placing orders as early as possible. It is worth noting that, by comparison, the price increases in the titanium dioxide sector remain relatively moderate; products within the petrochemical sector, for instance, often experience even more drastic and frequent price fluctuations.