China's TiO₂ market softened further in the middle of August. The producers offering the lowest prices are picking up more orders than they can comfortably handle; deliveries are running slow, and a few have started freezing new bookings altogether. Production pressure is increasing right where prices are lowest.

What's Behind the Discounts

The recent price cuts have been made possible by a softer sulfate-route cost structure. Titanium ore prices have eased modestly, sulfuric acid has declined through successive rounds of cuts, and ferrous sulfate by-product values have remained firm.

Worth watching: after two straight weeks of declines, sulfur prices at Chinese ports and sulfuric acid prices in Southwestern China have both leveled off after the drops in the past two weeks. There isn't much room left on the cost side to keep pushing prices lower.

Bearish sentiment is slowly easing

On supply and demand, the fundamentals have not changed: supply still exceeds demand. What has shifted is that August demand has been slightly better than in the past two months, supported by that steady underlying need.

There are still many rumors about low prices in the market right now. This shows that many people in the industry still expect prices to fall in the near future. As more producers start to cut prices, the low prices are pulling the whole market down. This will affect where prices go next. But the key point is still the new pricing from the big producers at the end of August or early September. Some producers are already running their factories less and trying to keep prices stable by controlling how much they supply.

Outlook

The TiO₂ market is likely to remain weak in the near term, but the downside is becoming more limited. Lower-priced producers are receiving more orders, although slower deliveries and temporary order suspensions indicate that discounted orders are not always immediately available.

With sulfur and sulfuric acid costs now stabilizing, TiO₂ prices appear to be approaching a lower range rather than entering an unlimited decline. Oversupply remains unresolved, but better August replenishment demand and the prospect of downstream restocking ahead of the traditional September–October peak season could gradually reduce bearish sentiment. The market will be watching the next pricing moves from major producers closely. Until then, supply discipline and deal-by-deal negotiations will remain central to price direction.

One practical note for overseas buyers: shipping capacity has tightened recently. You are advised to book orders ahead of time to prevent any disruption to your production plans due to shipping delays.

Market Notice: August may be the last window for lower TiO₂ prices before peak-season restocking kicks in. Contact us: info.hk@titanos.com.cn for grade recommendations and current quotations.