TiO₂ PRICES SOFTEN IN JUNE – Supply Glut Meets Seasonal Slump

After five rounds of price hikes earlier this year, China’s titanium dioxide market took a turn in June.

According to SunSirs data, sulfate-process rutile TiO₂ prices dropped from RMB 17,200/ton on June 1 to RMB 16,460/ton by June 26 – a 4.3% decline in just four weeks.

What’s Driving the Downturn?

Weak seasonal demand – June marks the traditional off-season for downstream coatings and plastics buyers. Most are purchasing only hand-to-mouth, with little incentive to build inventories.

Heavy supply overhang – In May alone, domestic TiO₂ output reached 353,800 tons, up 6.31% month-on-month, with industry operating rates hitting 80%. Meanwhile, producer inventories climbed to 263,000 tons, a 14.1% monthly increase.

Cost vs. Demand squeeze – While sulfur/sulfuric acid prices remain elevated (sulfur hit RMB 11,600/ton mid-month before easing), producers are caught between high input costs and sluggish offtake. The result? A messy pricing landscape where actual transactions are negotiated case-by-case.

The Takeaway

The industry is sending conflicting signals:
Costs – still high, with sulfur supply tight and prices volatile
Supply – high operating rates and rising inventories
Demand – seasonal weakness, buyers cautious

Major producers may trim operating rates to stabilize prices, but near-term market sentiment leans cautious.

Are you seeing similar softening in your regional markets? Share your observations below.