After the Labor Day holiday, the titanium dioxide market continued the weak trend seen in April. The price adjustments from major large-scale producers, which have been the focus of widespread attention, have mostly been announced, with changes generally ranging from 0 to 500 yuan per ton. Market prices remain largely similar to last week, with the majority holding steady and only minor adjustments elsewhere. Following the announcement of the latest pricing policies, new order volumes have slightly increased. However, profit margins on the supply side have been severely compressed, with some producers operating at minimal profits, break-even, or even losses. The small surge in demand for essential purchases typically occurs before a pricing window, while weak cycles follow afterward. Trading activity in May has already begun, and essential demand still exists.

Amid this weak market, major large-scale producers have played a stabilizing role, preventing sharp and rapid price declines and averting heightened panic among users. They have also bought time and space for fellow producers.

The weak market trend has been set, and as in previous cycles, both buyers and suppliers have adopted procurement and sales strategies suited to a downward phase.

Supply Side: Due to declines in the prices of titanium ore, sulfur, and sulfuric acid, production costs for titanium dioxide manufacturers have slightly decreased. With this cost buffer, price reductions of a few hundred yuan are more understandable. However, a few producers have cut prices more significantly, mainly for two reasons: first, their own production and operational needs; second, a deliberate strategy to trade profits for orders—using competitive pricing to fill customers' inventories first, leaving no room for competitors

The varying price adjustments and differing supplier strategies have led to a highly chaotic market, with significant price disparities even for the same product. This stems from imprecise price information, including rumors and misleading signals released by buyers during negotiations—normal phenomena reflecting different market players’ stress responses. At this stage of the market, low-cost inventory on the supply side is unlikely, so careful verification is essential.

Note: The ups and downs of titanium dioxide prices are routine, occurring every year. This cycle is no different from previous ones. We understand the panic—it stems from uncertainty about the duration and severity of the weak market. But there’s no need for undue concern; the sky won’t fall. Simply adjust strategies for rising and falling markets. The current chaos is temporary, and normalcy will eventually return.

Demand Side: In a declining titanium dioxide market, essential purchases exert strong downward pressure on prices, with buyers wielding greater bargaining power and a heightened focus on price comparisons. Demand-side players often split procurement plans into smaller, more frequent orders. Despite events like tariff changes, essential demand persists—it’s just a matter of which supplier meets customer needs first to secure orders. The initial wave of essential demand following the latest price announcements is critical, though the enthusiasm is unlikely to last long. After this, the market will likely face an extended period of subdued trading.