This March has witnessed an overseas price increase in both finished goods and raw materials, presenting a sharp contrast to the fluctuant domestic decrease. According to analysts, titanium dioxide market needs time to recover since downstream buyers are still pussyfooting despite the coming of peak season.

Overseas manufacturers successively announced price increase in February with DuPont spearheads the upsurge. DuPont tentatively raised its quoted price to Chinese medium and small-sized buyers by 500 Chinese yuan (US$80.5) per tonne in early February, only to receive relatively cool market response. At the end of February, Kronos respectively put €200 (US$257.2), $250 and $220 on the price of its titanium dioxide products in Europe, Asia-Pacific regions and North American, followed by Huntsman’s €230 in Europe and Ishihara’s $300 in Asia-Pacific regions.

The price increase tide is regarded as an attempt by international business giants to make up the loss caused by last year’s recessed market, though it shows limited influence on domestic buyers.

Weak demands and tumbling profits cast a shadow over titanium dioxide manufacturers. Latest statistics show that domestic manufacturers’ capacity utilization is only 50 to 60 percent, far lower than normal.

After the Spring Festival, an annual national festival which marks a new leaf in Chinese people’s view, domestic market does not take on a new look. Weak real estate industry fails to boost titanium dioxide demands and overcapacity results in fierce competition, both of which discourage price increase. Besides, imports and exports present a gloomy prospect this season. According to General Administration of Customs, China’s titanium dioxide imports in January grew by 44.53 percent over last year's same period to 14534.5 tonne while exports declined by 36.64 percent to 22070.7 tonne, putting greater stress on domestic companies.

Imported products with low price also contribute to domestic brands’ slow recovery. The lowest price of imported chloride titanium dioxide in January was 21500 Chinese yuan.