The 2023 Titanium Dioxide Price Adjustment Summary.

In 2023, to alleviate cost pressures, the leading titanium dioxide enterprise, LB Group, took the initiative to announce price increases on seven occasions: January 31st, February 28th, April 11th, July 25th, August 24th, September 19th, and December 6th. This move aimed to boost market confidence, prompting other companies to follow suit.

The initial price increase was driven by the robust prices of raw material titanium ore, with the majority of domestic titanium dioxide producers operating at or near break-even, and even some major producers operating at a loss. Coupled with the shutdown or maintenance of nearly twenty enterprises, the supply decreased, leading to the initial price increase of 800 to 1000 yuan.

The second price increase was attributed to tight supply and high prices of raw materials such as titanium ore, resulting in significant cost pressures for titanium dioxide producers. Additionally, major downstream industries such as coatings experienced widespread resumption of production, leading to a gradual depletion of supply inventories, even resulting in negative inventory. Consequently, the second round of price increases, including those by Longbai Group and over twenty other producers, amounted to 800 to 1000 yuan.

The third price increase was similarly due to the continuous rise in the price of titanium ore, coupled with ample standing orders for titanium dioxide manufacturers and a movement in market prices. The fourth increase was driven by cost pressures and short-term production reductions by manufacturers, leading to market shortages, compounded by concentrated large-scale orders from end-users, nearly depleting supply inventories. The fifth increase was primarily due to high prices of main raw materials such as titanium ore and sulfuric acid, with manufacturers still facing significant cost pressures. Combined with tight product supplies, end-users still anticipated further price hikes. The sixth increase was due to the continued high prices of sulfuric acid, with both domestic and foreign trade customers stocking up for the Mid-Autumn Festival, National Day, and Christmas, resulting in a high number of standing orders in the supply chain. The seventh increase was due to the ample standing overseas orders of major domestic producers, while also actively responding to anti-dumping investigations initiated by the Eurasian Economic Union, the European Union, and others.

These consecutive price increases reflect the complex interplay of factors such as raw material prices, production capacity, market demand, and international trade dynamics, underscoring the challenges faced by the titanium dioxide industry in balancing cost pressures and market conditions.