As March begins, the titanium dioxide market is entering its traditional seasonal demand period. This week, the market saw the first round of price increases in 2026, led by LB Group, with 26 producers globally announcing price adjustments, including Chemours and Tronox.

Most announced increases are around USD 100/ton. Notably, this round of increases was initiated by chloride-process producers in China, followed by sulfate-process producers, resulting in price adjustments across both production routes.

With the market moving into March, the upward pricing trend has largely taken shape. While the extent of implementation varies among producers, overall market sentiment remains firm. Most downstream buyers remain cautious, continuing to purchase mainly based on essential demand, although the price signals have stimulated some additional flexible demand. One key driver behind the increase is the continued strength in the prices of sulfur and sulfuric acid, the main raw materials for sulfate-process TiO₂.

Volatility in global energy and raw material markets has also raised concerns about supply chains. Recent geopolitical tensions involving the United States, Iran, and Venezuela, as well as continued instability in several energy-producing regions, have added new uncertainties to global trade and logistics networks.

At the same time, the global shipping market has shown signs of renewed instability, with container availability tightening on some routes and freight rates rising sharply in recent weeks. These developments may further increase logistics and transportation costs for chemical producers and exporters.

Another factor influencing shipping demand is a recent policy adjustment in China’s export tax rebate system. Starting from April 1, 2026, China will cancel export tax rebates on 249 products, mainly covering sectors such as photovoltaics, chemicals, building materials, light industry, and batteries. In response, some exporters have accelerated shipments ahead of the policy change, which has further increased short-term pressure on container availability and freight rates.

Iran is the world’s third-largest sulfur exporter, accounting for roughly 30% of global supply, while about 56% of China’s sulfur imports come from the Middle East. If supply tightness intensifies, sulfur prices may see further increases. This would keep production costs for sulfate-process TiO₂ at elevated levels. Recently, sulfuric acid prices have already reached around USD 200/ton.

Meanwhile, earlier order deliveries have reduced producer inventories to some extent, and in certain cases shipments are already being scheduled in advance. These factors suggest that short-term market prices are likely to remain firm with upward momentum.

However, the sustainability of price increases should be viewed rationally. Many producers are currently operating at relatively high utilization rates, and overall supply still exceeds demand. Without stronger demand support, it may be difficult for price increases to be sustained for an extended period. A more durable market recovery will depend on a better balance between supply and demand.

From a broader perspective, recent geopolitical tensions have posed new challenges to global supply chains. However, supported by its integrated industrial system and relatively complete domestic supply chain, China’s titanium dioxide industry continues to operate at stable and healthy production levels, ensuring relatively reliable supply to both domestic and international markets.