Titanium dioxide (TiO₂) is the most widely used inorganic chemical pigment globally, mainly classified into two industrial grades: Rutile and Anatase. Endowed with core properties such as high hiding power, excellent whiteness, and chemical stability, it is extensively applied in coatings, plastics, papermaking, inks, chemical fibers, and new energy sectors. The production processes are mainly sulfate process and chloride process. Among them, the chloride process, featuring strong environmental friendliness and high product purity, has gradually become the mainstream upgrading direction of the industry.
Supply Side: Coexistence of Overcapacity and Technological Upgrading
Global production capacity is highly concentrated in China. In 2025, China's total titanium dioxide production capacity reaches 7 million tons/year, accounting for over 65% of the global total. It is expected to further increase to around 7.7 million tons/year in the next few years. However, the industry's capacity utilization rate is only 64%-66%, with prominent overcapacity issues.
The process structure is optimizing at an accelerated pace: the proportion of chloride process capacity jumps from 18% in 2024 to 39%. Its export performance is outstanding (month-on-month growth of 12.2% in October), while the export of sulfate process products shows a downward trend (month-on-month decrease of 10.9% in October). Technological upgrading has become the core competitiveness of enterprises.
Demand Side: Weak Traditional Sectors, Emerging Sectors Breaking Through
Insufficient support from traditional downstream demand (architectural coatings, automobiles, papermaking): The sluggish real estate market has led to a drop in the growth rate of architectural coatings demand from 8% in 2019 to 1.2% in 2024. The global economic slowdown has also suppressed demand in other traditional sectors, resulting in significant domestic inventory pressure.
New energy sector becomes a new growth engine: The consumption of titanium dioxide in the new energy sector reached 180,000 tons in 2024 and is expected to exceed 600,000 tons by 2030. Among them, the demand for photovoltaic backsheets grows at an annual rate of 27%, and each 1GWh of new energy vehicle batteries requires 15 tons of titanium dioxide, indicating substantial long-term demand potential.
Price and Trade: Falling Prices, Export Pressure
Prices continue to fluctuate downward: The average market price in Q3 2025 dropped by 14.21% year-on-year. In November, the average price of domestic sulfate-process rutile titanium dioxide fell to 13,500 yuan/ton (with a significant year-on-year decrease). Despite five rounds of collective price hikes by domestic enterprises and price increase plans by international giants, the actual implementation effect is limited due to weak downstream demand.
Export growth hindered: The cumulative export volume from January to August 2025 was 1.19 million tons (year-on-year decrease of 8.0%), and the export volume in October was 146,000 tons (year-on-year decrease of 5.2%). Weak global demand, coupled with anti-dumping investigations and tariff barriers in regions such as India and the EU, led to a 20% month-on-month drop in exports in Q2.
Industry Structure: Accelerated Shuffling, Concentration in Leading Enterprises
Increased operational pressure on enterprises: Falling prices and high costs of raw materials and environmental protection have led to losses for most enterprises (e.g., Anada's net loss exceeded 46 million yuan in the first three quarters), compressing the living space of small and medium-sized enterprises (SMEs).
Accelerated industry consolidation: Leading enterprises consolidate their advantages through industrial chain integration and capacity expansion, with the CR5 (concentration ratio of top 5 enterprises) reaching 60%. The advancement of circular economy and integrated projects further raises industry entry barriers, accelerating the elimination of SMEs.
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