Titanium Dioxide Officially Enters the Era of "High Quality and Low Price"

As July came to a close, the titanium dioxide market experienced slight price adjustments. These were mainly driven by a few manufacturers introducing new end-of-month settlement prices, with adjustments ranging from RMB 200 to 300 per ton. The price gaps among producers have widened slightly, though it is expected that major producers may also make pricing moves soon, which could lead to a narrowing of these differences again. A key factor contributing to this narrowing price gap is the issue of product homogenization, resulting in fierce competition across similar products. Smaller manufacturers and lesser-known brands are facing significant market pressure and displacement.

By quickly adjusting prices, some small and mid-sized producers are aiming to capture orders in advance—taking advantage of price and timing differentials to fill client inventories early. This reflects their flexible decision-making capabilities. On the other hand, the pricing strategies of leading manufacturers will ultimately shape the market’s future pricing tiers.

Although the market has seen minor adjustments, the number of manufacturers actively adjusting prices remains limited. On one hand, there is little room for further decline; on the other, most attention is focused on potential moves by the major producers. As a result, many buyers are holding off on purchasing and taking a wait-and-see approach. It’s worth noting that at current price levels, most producers are already operating at a loss. Any further price reductions would merely increase the scale of those losses. The overall operating rate across the industry may continue to decline—some large enterprises in Southwest China, for instance, have already halted production.

The fact that many producers are struggling to maintain operations signifies that the titanium dioxide industry has officially entered an era of “high quality and low prices.” After several consecutive months of price declines, producers have been pushed to test the limits of their cost structures. The market has turned into a battleground of cost-cutting and price competition. The industry is now entering a period of divergence: high-end users at the top of the value chain are showing a stronger desire for domestic alternatives and even "low-end" sourcing, while capable producers are pursuing both internationalization and high-end product development.

This kind of "two-way endeavor" may ultimately benefit the long-term development of the titanium dioxide market. However, the industry will have to endure a painful period of adjustment—however long or short that may be.