In the first half of 2025, China’s titanium ore and titanium dioxide (TiO₂) markets experienced considerable fluctuations amid a complex economic landscape. Although Q1 saw a brief recovery due to early restocking, Q2 faced oversupply pressures that led to significant price corrections.

1. Titanium Ore Market Overview

(1) Domestic Titanium Ore Prices
Domestic prices showed a volatile trend. By late June 2025, mid-sized producers in Panzhihua had seen prices drop approximately RMB 270/ton compared to January. Large producers’ 47% TiO₂-grade ore fell by about RMB 100/ton.

Price increases in Q1 were driven by:
    •    Tightened raw ore supply from Pangang
    •    Spring Festival-related factory maintenance
    •    Surge in downstream TiO₂ prices
    •    Increased titanium ore procurement activity

However, by late March, the market weakened due to:
    •    Titanium ore prices reaching unsustainable highs
    •    Downstream demand slowdown and inventory buildup
    •    Sellers reducing prices to stimulate sales

As of late June, typical prices were:
    •    38% TiO₂ concentrate: RMB 1,100–1,200/ton (excl. tax)
    •    46% TiO₂ mid-grade ore: RMB 1,680–1,730/ton for small plants
    •    Large plant ore: RMB 1,950–2,150/ton

Outlook:
Despite planned production restrictions in July, the continued lack of end-market demand suggests a bearish short-term trend for titanium ore.

(2) Imported Titanium Ore
Imported titanium ore prices declined steadily throughout H1. Key factors:
    •    Weakened domestic demand for titanium slag and TiO₂
    •    Downward trend in domestic ore prices
    •    High costs of imported ore impacting downstream margins

H1 2025 price changes included:
    •    Vietnam B-grade FOB: ↓ USD 25/ton
    •    Australia CIF: ↓ USD 20/ton
    •    Nigeria 48–49% TiO₂: ↓ RMB 400/ton
    •    Mozambique 46% TiO₂: ↓ RMB 300/ton

Chloride-route TiO₂ producers showed reduced interest in high-Ti content ores due to cost pressures. Port inventory levels rose, and overall import demand weakened.

2. Titanium Dioxide (TiO₂) Market Overview

The TiO₂ market displayed two clear phases in H1:

(1) Price Increase Phase (Jan–Mar)
Despite a soft start in January, restocking activities and rising raw material prices drove three rounds of price hikes. Notable drivers included:
    •    Higher sulfuric acid and titanium ore costs
    •    Reduced factory operations during the Spring Festival
    •    Export tax increases in India boosting China’s TiO₂ exports

(2) Correction Phase (Apr–Jun)
From April, oversupply and demand exhaustion began to impact pricing. Chloride-process TiO₂ demand was particularly weak.

By the end of June:
    •    Sulfate-process rutile TiO₂: RMB 12,800–13,800/ton (↓6% YTD)
    •    Sulfate-process anatase TiO₂: RMB 11,600–12,200/ton (↓7% YTD)
    •    Chloride-process rutile TiO₂: RMB 14,000–17,500/ton (↓8–10% YTD)

Outlook:
High inventory levels, weak construction coatings demand, and narrowing price gaps between sulfate and chloride TiO₂ suggest continued pricing pressure in Q3 2025.

(3) Market Correction Phase (April–June)
After peaking in March, the market experienced a downturn due to:
    •    Price fatigue from three consecutive hikes
    •    Weakened demand caused by early restocking
    •    Competitive pressure among producers
    •    Sluggish chloride-route TiO₂ market

By late March, price concessions began to emerge among mid-sized producers, yet sales volumes remained weak, and inventories piled up.

In April–May:
    •    Downstream demand weakened significantly.
    •    High raw material costs forced buyers to push for lower prices.
    •    Production rates among TiO₂ manufacturers declined.
    •    Factory inventories increased to multi-year highs.

In May, with the price gap between sulfate and chloride-route TiO₂ narrowing and overseas orders slowing, several leading producers announced RMB 300–600/ton price cuts. Traders also offloaded inventory at discounted prices, further dragging the market.

By June:
    •    Downstream demand remained subdued due to the off-season.
    •    Export activity declined, particularly in Southeast Asia and the Middle East.
    •    Some manufacturers postponed or reduced production plans.

June-end Price Summary:
    •    Sulfate-process rutile TiO₂: RMB 12,800–13,800/ton (↓6% YTD)
    •    Sulfate-process anatase TiO₂: RMB 11,600–12,200/ton (↓7% YTD)
    •    Chloride-process rutile TiO₂: RMB 14,000–17,500/ton (↓8–10% YTD)

3. Market Outlook

Titanium Ore:
    •    Short-term: Weak fundamentals expected to continue due to sluggish downstream TiO₂ demand and sufficient ore availability.
    •    Risk Factors: Inventory accumulation, high cost pressure for small miners, and reduced export orders.

Titanium Dioxide:
    •    Short-term: Prices likely to remain under pressure in Q3 due to:
    •    Ongoing low season for coatings and plastics
    •    High stock levels at manufacturers and distributors
    •    Reduced foreign orders
    •    Medium-Term: If raw material prices stabilize and demand recovers in Q4 (e.g., due to infrastructure projects or restocking), there may be room for a gradual rebound.