Daily review: Rutile And Chloride Titanium Dioxide Raw Material Supply Risks Intensify, Cost And Demand In Titanium Dioxide Market Battle

Market Overview: On June 5, the risk of raw material supply disruptions intensified, while titanium dioxide costs and demand remained in a tug-of-war. Mainstream quotations for anatase titanium dioxide were RMB 14,800–15,200/tonne, unchanged from the previous working day; mainstream quotations for chloride-process titanium dioxide were RMB 16,500–18,200/tonne, unchanged from the previous working day.

Market analysis: To implement the national fertilizer supply assurance requirements, major refineries including PetroChina, Sinopec, and CNOOC have uniformly suspended the supply of domestic sulfur to non-fertilizer enterprises such as titanium dioxide producers. The raw material supply is facing a direct threat, and expectations for stronger cost support for titanium dioxide enterprises are rising. However, as it is currently the traditional off-season for downstream industries such as coatings and construction materials, downstream companies remain cautious in placing orders and mainly purchase only to meet rigid demand, while weak demand continues to weigh on the market.

Market outlook: The titanium dioxide market is mired in a stalemate of “high costs and weak demand,” with both buyers and sellers largely adopting a wait-and-see attitude and trading remaining sluggish. In the short term, the market is likely to continue fluctuating within a narrow range. Therefore, the average market price of anatase titanium dioxide is expected to be around RMB 14,500/ton tomorrow, while the average market price of chloride-process titanium dioxide is expected to be around RMB 17,000/ton. Negotiated prices are expected to fluctuate within a range of RMB 300–500/ton, and actual transaction prices will mainly be determined on an order-by-order basis depending on order volume and manufacturers’ inventory levels.