This year, the titanium dioxide industry in China has shown strong growth momentum. Total production capacity is expected to exceed 1 million tons, with output reaching between 930,000 and 970,000 tons—representing a 10% to 12% increase compared to the same period last year. Rutile titanium dioxide production hit around 350,000 tons, up by 14% year-on-year, marking a new high. As the world’s second-largest producer, China’s influence on the global market continues to grow. However, rising costs of raw materials such as titanium ore, sulfuric acid, coal, and diesel have put pressure on the industry. For instance, ilmenite prices are now 300 yuan higher per ton than last year, while sulfuric acid costs have increased by 700–800 yuan. These factors have squeezed profit margins, especially for anatase producers, while rutile profits have also declined. The rapid expansion of the industry has exposed several key challenges: resource scarcity, environmental protection conflicts, imbalanced product structures, and a lack of independent innovation. To address these issues, China's titanium dioxide sector is moving toward sustainable development, focusing on large-scale operations, resource efficiency, high-quality products, specialized varieties, integrated supply chains, and cleaner production methods. First, the industry is promoting the coordinated development of both the sulfuric acid and chlorination processes. While the sulfuric acid method is widely used due to its ability to utilize low-grade titanium concentrate and recycle waste acid, the chlorination method offers greater efficiency and environmental benefits. With the completion of a 15,000-ton chlorination plant in Jinzhou, the stage is set for broader adoption of this advanced process. In the near future, both methods will coexist and evolve together. Second, industry restructuring is accelerating, with a focus on scale and group development. Currently, over 70 companies operate in the sector, many of which are small or medium-sized. This fragmented structure leads to inefficiencies. Major players like Pangang Group are leading consolidation efforts, while others in Guangxi are forming large-scale production bases. Mergers and acquisitions are becoming the preferred route for growth, helping to balance supply and demand and improve overall competitiveness. Third, the industry must diversify and enhance the quality of raw materials. China’s titanium ore demand exceeds 1.9 million tons annually, but domestic production only reaches 1.1 million tons. By 2010, domestic supply may meet less than 50% of demand. To mitigate this, the industry is turning to imported titanium slag and higher-grade ores. Future chlorination-based production will rely heavily on natural rutile, requiring the establishment of large-scale domestic sources. Fourth, improving technological capabilities through multiple channels is essential. China’s titanium dioxide industry is still developing, and upgrading technology is crucial for reducing resource use, pollution, and enhancing product quality. This includes adopting advanced foreign technologies, re-innovating them, and strengthening R&D infrastructure to support long-term innovation. Fifth, product development must be market-driven and diversified. The industry should focus on premium products like pulp-grade titanium dioxide, high-grade decorative paper, chemical fiber, and food-grade applications. Companies with strong resources can target high-end, specialized products to replace imports, while mid-sized firms can focus on differentiated, high-value offerings. Lastly, the industry must adapt to changes in export tax rebate policies. The new policy, effective from July 1st, will impact exports. While it poses challenges, the industry should respond strategically by adjusting pricing, product development, and energy efficiency measures to minimize negative effects. In summary, the Chinese titanium dioxide industry is at a critical juncture, facing both opportunities and challenges. By embracing sustainability, innovation, and strategic growth, it can continue to thrive in the global market.

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