Since early 2026, China’s TiO₂ industry has seen five consecutive price hikes led by LB Group, with cumulative domestic increases reaching RMB 3,500/ton. Yet in Q1 2026, combined net profit of eight major listed TiO₂ companies plummeted 46.3% YoY – a classic case of “more revenue, less profit.”
1.Who’s Eating the Profits?
The culprit: surging sulfur prices. As of June 10, sulfur hit RMB 10,000/ton – up 143.9% since January and 337.64% YoY.
●Producing 1 ton of sulfate-process TiO₂ requires 3–4 tons of sulfuric acid, adding RMB 3,000–5,000/ton in costs
●Strait of Hormuz blockade cut China’s April sulfur imports by 72.39% YoY; port inventories collapsed from 1.91M to below 900K tons (safety line: 1.6M)
2.Weak Demand + Trade Barriers
~60% of TiO₂ goes to coatings, but the property market remains sluggish, with coatings capacity utilization below 60%. Downstream buyers resist higher prices.
Meanwhile, the EU, US, Brazil, and others continue imposing anti-dumping duties on Chinese TiO₂, forcing volumes back into the domestic market and intensifying competition.
3.Even the Leaders Are Hurting
● LB Group: Net profit RMB 187M, down 72.74% YoY – worst in a decade
● Huiyun Titanium: Swung to a RMB 7.6M loss
● Jinpu Titanium: RMB 28.4M loss, widening 84.66%
4. The Way Forward
Exports tell a brighter story. Jan–Apr 2026 total exports: 730,300 tons, up 12.53% YoY.
Chlorination-process exports surged 39.63% YoY to 178,600 tons – far outpacing sulfate’s 5.88%
The chlorination process consumes virtually no sulfuric acid – offering a powerful buffer against sulfur price shocks – and is now the core growth path for major producers.
5.Outlook
Short-term: High raw material costs, persistent trade barriers, and overcapacity remain.
Long-term: Industry consolidation accelerates. Leaders will expand overseas and ramp up chlorination capacity. Smaller players lacking core advantages will gradually exit. Concentration rises.
Post time: Jun-18-2026