How is the titanium dioxide industry faring? What is its current development status?

II. Severe Supply-Demand Imbalance: Overcapacity Meets Weak Demand ・ Severe supply-side overcapacity: Following rapid expansion of China’s titanium dioxide (TiO₂) production capacity, domestic effective capacity reached 5.7 million tons/year in 2025—yet industry-wide capacity utilization stood at only 77.3%. Global TiO₂ capacity totals approximately 9.93 million tons, with China accounting for over 60%, resulting in serious oversupply relative to demand. Due to overcapacity and persistent losses, an estimated 50–60% of industry players are operating in a 'cash-burning' mode; some have even filed for bankruptcy. JINPU Titanium’s decision to shut down half its production capacity (80,000 tons/year) epitomizes the sector’s distress. III. Rigid Cost Structure: Raw Materials Dominate Costs, Limiting Corporate Control ・ Raw material costs exceed 60% of total production cost: In TiO₂ manufacturing, raw materials—including titanium ore and sulfuric acid—account for over 60% of total cost, far surpassing the healthy operational threshold. Titanium ore alone comprises up to 40% of operating costs. ・ Vastly unequal resource control: Only a handful of leading Chinese firms—such as Lomon Billions and Pangang Vanadium & Titanium—own proprietary titanium ore resources. Most enterprises rely entirely on external procurement, leaving them with weak bargaining power and highly vulnerable to raw material price volatility. Any rise in input prices severely compresses profit margins. IV. Industry Competition Landscape: Predatory Price Competition Is Widespread ・ Concentrated new capacity releases coupled with cutthroat competition: Newly commissioned and expanded facilities have steadily increased industry supply slack. To retain market share and maintain operating rates, some companies have resorted to accepting orders below cost—further depressing industry profitability across the board. ・ Recurrent price wars: In 2025, the industry witnessed multiple 'price hike waves', yet each was swiftly eroded by fierce price competition—and the magnitude of increases lagged far behind raw material cost hikes. ・ Severe product homogenization: TiO₂ products exhibit low differentiation, making it difficult for firms to command premium pricing. Amid overcapacity, the industry has sunk into a 'price war' quagmire, squeezing profit margins for all participants. V. International Giants’ Struggles: Global Market Under Simultaneous Pressure ・ Chemours: In 2025, its Titanium Technologies business generated $2.429 billion in revenue—a 6% year-on-year decline—and adjusted EBITDA plunged 52% YoY to just $145 million. Overall profitability shrank from 12% to 6%, hitting a multi-year low. ・ Tronox: In January 2026, following a global asset review, it announced the permanent closure of its titanium dioxide production facility in Fuzhou, China.

What is the overview and supply-demand analysis of the global titanium dioxide market in 2026?

Chlorination-process products offer superior quality and lower environmental impact—aligning well with high-end applications and sustainability trends. Lomon Billions is the first domestic firm to break through and scale up chlorination-process technology. Its current domestic chlorination-process capacity stands at 660,000 tons/year, supplemented by an additional 150,000 tons/year from its acquired UK plant. Kunchi Technology’s Phase I project (200,000 tons/year) is ramping up gradually, while its Phase II (600,000 tons/year) progresses steadily. Tianyuan Group currently operates a 100,000-ton/year chlorination-process TiO₂ facility running at full capacity. Among planned new TiO₂ capacity additions in China for 2025–2026, chlorination-process output totals 1.08 million tons—far exceeding sulfate-process additions of 520,000 tons. Downstream Applications: Coatings, Plastics, Paper, Ink, etc. Approximately 60% of TiO₂ consumption goes to the coatings industry. Rutile- and anatase-type TiO₂ serve as the 'foundation of whiteness' in coating formulations—essential for architectural exterior aesthetics, high-gloss automotive finishes, and uniform film formation in wood/furniture coatings. According to Huirui Consulting, TiO₂ consumption share in coatings is projected to rise from 59.1% in 2026 to 62.2% by 2030. However, current architectural coatings face headwinds from the sluggish real estate sector, with overall coating plant utilization rates falling short of 60%. Plastics constitute TiO₂’s second-largest application segment, accounting for roughly 24% of consumption. From electronic appliance housings and automotive interior/exterior trim to daily-use plastic goods and food packaging films, TiO₂ imparts whiteness and enhances weather resistance. Paper applications account for 8–10% of consumption, primarily in printing paper, decorative paper, and specialty papers. Niche sectors—including ink, cosmetics, and food additives—also provide structural growth opportunities for TiO₂. Titanium Dioxide Market Competition Landscape The global TiO₂ market exhibits a highly concentrated oligopolistic structure. Chemours, Tronox, Lomon Billions, and Kronos are the world’s top four TiO₂ producers. Recently, overseas capacity has been gradually withdrawn, while Chinese manufacturers continue expanding internationally. On one hand, overseas giants are retrenching: ・ Chemours’ 2025 Titanium Technologies revenue totaled $2.429 billion, down 6% YoY; adjusted EBITDA fell sharply by 52% YoY to $145 million; overall profitability contracted from 12% to 6%, marking a multi-year low. ・ Tronox permanently closed its Fuzhou, China facility in January 2026. ・ Chemours raised TiO₂ prices in the Asia-Pacific region three times during the year, cumulatively increasing prices by $400/ton. On the other hand, Chinese leaders are rising: Lomon Billions is China’s leading TiO₂ producer and a veteran chemical enterprise with over 30 years of industry experience. Its chlorination-process TiO₂ capacity stands at 660,000 tons/year, and its sulfate-process capacity at 850,000 tons/year; its 2025 capacity utilization rate was approximately 84.53%. In 2025, Lomon Billions plans to acquire Venator UK’s Greatham facility—a 150,000-ton/year chlorination-process TiO₂ plant in the UK. Venator, alongside Chemours, Tronox, and Kronos, ranks among the 'Big Four' TiO₂ producers in Europe and North America; Venator UK is its sole chlorination-process TiO₂ production site. Upon completion of the acquisition, Lomon Billions’ total TiO₂ capacity will reach 1.66 million tons/year. Against the backdrop of high EU anti-dumping duties on Chinese TiO₂ and steep U.S. import tariffs on Chinese goods, overseas asset acquisitions support Lomon Billions’ global industrial layout strategy.

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