Recently, titanium dioxide companies have issued new price increase notifications.

On August 18, leading domestic titanium dioxide enterprises including Lb Group Co.,Ltd. (002601.SZ) and Guangdong Huiyun Titanium Industry Co.,Ltd. (300891.SZ) released pricing adjustment letters, stating that starting from August 18, 2025, the sales prices of all titanium dioxide grades would be increased by 500 yuan/ton for domestic customers and $70/ton for international customers based on original prices.

A staff member at Lb Group told reporters on August 22 that the company was not the first to raise prices in this round, and the main reason for the price increase was that titanium dioxide prices were at relatively low levels. The company's large-scale operations provide certain advantages compared to the industry.

Looking ahead, Sun Shanshan, a titanium dioxide analyst at JLC Network Technology, told reporters on August 22 that if downstream demand shows certain growth in September, it will gradually support modest price increases for titanium dioxide. If growth remains weak, inventory digestion speed will be difficult to improve, and prices will not see widespread increases, though there may be minor fluctuations for certain grades due to tight domestic supply.

Over 20 Companies Raise Prices

Titanium Ocean Technology was the first to initiate price increases in this round.

On August 15, the company issued a price increase notice stating that considering current domestic and international titanium dioxide market conditions and continuous raw material price increases, the company decided to raise prices effective immediately: rutile-type and anatase-type titanium dioxide prices would increase by 800 yuan/ton for domestic customers and $80/ton for foreign customers.

On the same day, Guocheng Resources announced that based on titanium dioxide market trend changes, the company decided to temporarily suspend titanium dioxide sales orders and delay shipments for existing orders where possible, waiting for market clarity before resuming contract signings.

Subsequently, Lb Group and other titanium dioxide companies followed suit. According to Longzhong Information statistics, over 20 companies announced price increases.

Sun Shanshan told reporters that price increases in August-September are typically high-probability events, and with current low inventory levels among traders and downstream factories, titanium dioxide companies have reason to raise prices.

However, Sun Shanshan further noted that facing loose domestic supply conditions, companies aim to stimulate trader and downstream restocking during price adjustments to reduce inventory pressure. Without substantial terminal market improvement, the purpose of titanium dioxide companies' price increases is more about stopping price declines.

Lb Group staff also confirmed to reporters that price increases are mainly due to current prices being too low, while raw material costs continue rising.

Currently, titanium dioxide market prices have reached their lowest levels in nearly five years. Particularly in the second quarter of this year, affected by anti-dumping measures from multiple overseas countries that hindered exports, titanium dioxide prices declined significantly. Market demand faced pressure, industry capacity utilization gradually decreased leading to inventory accumulation, and the titanium dioxide industry fell into a predicament of declining both volume and prices.

Rising raw material costs for titanium dioxide have also kept comprehensive costs at high levels.

Besides titanium ore already at high levels, sulfuric acid prices, another major raw material for titanium dioxide, have continued growing. In 2025, sulfuric acid market prices soared, with March sulfuric acid average prices breaking through 700 yuan/ton, a 41.7% increase from the beginning of the year, with nearly 90% increases in Yunnan region. According to Business Society data, as of August 18, sulfuric acid prices remained above 720 yuan/ton.

Sun Shanshan told reporters that the titanium dioxide industry has been in prolonged losses, with average losses of about 1,000 yuan/ton from the beginning of the year to mid-August. Losses continued to worsen from June to August, with August losses around 2,000 yuan/ton, increasing operational difficulties for companies and creating urgent need for price increases to alleviate loss pressure.

Poor Performance of Listed Companies

Based on disclosed financial reports, titanium dioxide listed companies' performance appears concerning.

Semi-annual reports show that during the reporting period, Lb Group achieved operating revenue of 13.342 billion yuan, down 3.34% year-over-year, with net profit of 1.385 billion yuan, down 19.53% year-over-year. Lb Group mentioned in its semi-annual report that the titanium dioxide industry faces increasingly loose supply conditions, with price competition and continuously expanding capacity squeezing industry-wide profits. The company maintains profitability in titanium dioxide operations due to cost advantages and brand premiums.

Another titanium dioxide company, Annada, reported losses. In the first half of 2025, the company achieved total operating revenue of 876 million yuan, down 10.51% year-over-year, with net losses of 26.2678 million yuan, down 158.08% year-over-year, turning from profit to loss. During the reporting period, the company's net losses were mainly due to declining titanium dioxide gross margins and lithium iron phosphate losses.

Some companies have begun seeking transformation due to poor titanium dioxide business performance.

In July 2025, Jinpu Titanium Industry released a major restructuring plan, proposing to divest titanium dioxide-related business assets through asset exchanges, share issuances, and cash payments, while acquiring 100% equity in Lide Oriental controlled by the actual controller's daughter. If completed, Jinpu Titanium Industry would exit the titanium dioxide industry and transform into a rubber products manufacturer. Financial reports show the company has been continuously losing money since 2022.

Since 2022, with international supply chain recovery and domestic titanium dioxide capacity expansion, titanium dioxide production has grown significantly, while downstream demand from coatings, plastics and other industries remained insufficient, leading to continued weakening of titanium dioxide prices. In recent years, the titanium dioxide market has faced oversupply issues. Can the industry save itself through production cuts?

Lb Group staff indicated that production cuts have not yet begun, with over 40 titanium dioxide companies and low industry concentration making operations difficult. Sun Shanshan told reporters that while the titanium dioxide industry currently faces losses, titanium dioxide companies' production shows alternating patterns, making it difficult to achieve supply-demand balance through supply-side reductions.

Sun Shanshan believes that if downstream demand shows certain growth in September, it will gradually support modest titanium dioxide price increases. If growth remains weak, inventory digestion speed will be difficult to improve, and prices will not see widespread increases, though there may be minor fluctuations for certain grades due to tight domestic supply. For September market price trends, actual downstream demand growth remains the core driving factor.

In the medium to long term, Dagong International believes that as many titanium dioxide producers' profitability declines, some titanium dioxide producers with limited cost control capabilities, high environmental costs, and outdated technology face elimination. International titanium dioxide leaders will continue capacity contractions, with titanium dioxide prices expected to rebound in 2026.

Dagong International notes that due to rapid domestic titanium dioxide capacity expansion with expansion inertia and high capacity upgrade needs, titanium dioxide capacity will continue expanding. With no significant improvement in market demand from coatings, plastics and other industries, future titanium dioxide prices will remain difficult to recover substantially.