I. Price Movement

Taking the widely traded sulfate-process rutile grade titanium dioxide in the domestic market as an example, data from SMM shows that titanium dioxide prices in China decreased this week. The average price last Friday (June 13) was 14,220 CNY/mt, falling to 14,160 CNY/mt by this Friday (June 20). This represents a decline of 0.42%.

II. Market Analysis

China's titanium dioxide market trended weakly lower this week. International export demand remained sluggish, while the domestic market entered its off-season, resulting in overall weak demand and a lack of positive catalysts. Downstream factories adopted a cautious approach towards procurement. Upstream, titanium concentrate prices declined, while sulfuric acid prices increased. Facing pressure from inventory and costs, producers operated below full capacity, contributing to a strong wait-and-see sentiment across the market.

As of now, domestic sulfate-process rutile grade titanium dioxide is mostly offered in the range of 13,500 - 14,600 CNY/mt. Anatase grade titanium dioxide is offered around 12,300 - 12,800 CNY/mt. Actual transaction prices are subject to individual negotiation.

Regarding titanium concentrate, prices remained weakly stable this week. Current demand from downstream titanium dioxide producers is poor, with sluggish new order activity leading to cautious raw material purchasing. Market participants are largely adopting a wait-and-see approach, putting pressure on miners to sell. Overall, prices operated on a weak and stable basis. As of now, transaction prices for 46-grade concentrate (TiO2 content ≥46%) from small and medium-sized miners are in the range of 1,750 - 1,800 CNY/mt. Prices for 47-grade concentrate (TiO2 content ≥47%) are between 1,950 - 2,150 CNY/mt. 38-grade mid-grade concentrate (TiO2 content ≥38%) is quoted around 1,120 - 1,250 CNY/mt (excluding tax). It is expected that titanium concentrate prices will continue their weak and stable trend in the short term.

III. Market Outlook

SMM titanium dioxide analysts believe: Prices in China's titanium dioxide market edged lower this week due to weak downstream demand. Market transactions were thin, primarily driven by individual negotiations, with cautious buying sentiment prevailing. It is anticipated that the titanium dioxide market will remain in a wait-and-see mode in the short term, with actual transaction prices determined case-by-case.