On March 16, Longbai Group (002601) announced a price increase for its snow lotus titanium dioxide products, with a domestic market adjustment of 500 yuan per ton and an international market adjustment of 100 US dollars per ton. Subsequently, multiple enterprises such as Huiyun Titanium (300891), Kunming Donghao, and Shandong Xianghai quickly followed suit with identical price hikes. This marks the second round of collective price adjustments within the industry this month, following the joint price increase by over 20 titanium dioxide manufacturers at the end of February and the beginning of March.
The root cause of this round of intensive price hikes stems from the sharp surge in upstream raw material costs. According to data from the commodity quotation platform Business Society, as of March 17, the benchmark price of sulfur was reported at 4,616.67 yuan per ton, up 18% from the beginning of the month and 77% year-on-year; while the benchmark price of sulfuric acid had soared to 1,185 yuan per ton, rising 12.06% from the beginning of the month and 83% year-on-year.
Sulfur is a byproduct of the refining process of traditional energy sources such as petroleum and natural gas, primarily used in the production of sulfuric acid. China's sulfur imports heavily rely on the Middle East, with imports from the region accounting for 56.2% of total imports in 2025. The recent escalation of conflicts in the Middle East and the tense situation in the Strait of Hormuz have directly impacted the global sulfur supply chain, further driving up sulfur prices.
According to a research report by Huachuang Securities, raw material costs account for over 60% of the total production cost of titanium dioxide. Driven by strong cost pressures, the industry faces widespread cost inversion challenges.
It is worth noting that despite two rounds of price hikes within the month, the current titanium dioxide price has yet to recover to the level of the same period last year. According to data from Business Society, as of March 17, the benchmark price of titanium dioxide was 14,340 yuan per ton, up 3.17% compared to the beginning of the month but still approximately 9% lower than the same period last year.
According to the disclosed 2025 performance forecasts, performance pressure has become a widespread industry trend. Analysis of the announcements reveals that Anada (002136) expects a net loss of 65 million to 103 million yuan in 2025, representing a year-on-year decrease of 677.46% to 1015.05%. The company stated that during the reporting period, declining downstream demand led to a significant year-on-year drop in titanium dioxide product prices, coupled with a year-on-year increase in sulfuric acid prices, resulting in a notable decline in the gross margin of the titanium dioxide business.
During the same period, Jinpu Titanium Industry (000545) is expected to report a net loss of 428 million to 489 million yuan, with the loss amount widening year-on-year. Although Huayun Titanium Industry saw an increase in titanium dioxide sales last year, its net profit is also expected to fall into a deficit.
Persistent operating losses are forcing the supply side to accelerate asset liquidation. On January 16, American company Tenova Group announced the permanent closure of its titanium dioxide production facility in Fuzhou, China. On the same day, Jinpu Titanium Industry announced the shutdown of its wholly-owned subsidiary, Xuzhou Titanium, which accounts for half of the company's total production capacity.
While domestic enterprises are grappling with cost pressures, they also face the "encirclement" of overseas trade barriers. On March 3, the UK Trade Remedies Authority initiated an anti-dumping investigation on rutilic titanium dioxide originating from China at the request of Tenova. This marks another major market for Chinese titanium dioxide—following the EU, India, Brazil, and Saudi Arabia—that has raised the anti-dumping hammer. In 2025, China's titanium dioxide exports totaled approximately 1.8169 million tons, a year-on-year decrease of 4.46%, marking the first annual decline since 2016.
Industry analysis suggests that the cost shock triggered by geopolitical factors is compounding the impact of overseas trade barriers, accelerating sector divergence. Guoshen Securities noted that against the backdrop of persistent losses, the survival space for small and medium-sized enterprises has been severely squeezed, with supply-side clearance emerging as a critical variable in price recovery.
China Securities Co., Ltd. believes that overseas anti-dumping measures will compel domestic enterprises to accelerate their global expansion. The case of Longba Group's acquisition of Panenergy's UK factory provides an industry benchmark for breaking through through "market exchange via mergers and acquisitions." Tianfeng Securities emphasizes that the current industry adjustment represents a profound structural reshaping, with cost control capabilities, technological craftsmanship, and global layout capabilities emerging as the core determinants of future competitiveness.
