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October 10, 2025

Titanium dioxide: six strategies to resolve the four major contradictions

China's titanium dioxide industry has shown strong growth momentum this year. The total production capacity is expected to exceed 1 million tons, with output reaching between 930,000 and 970,000 tons—marking a 10% to 12% increase compared to the same period last year. Rutile titanium dioxide production reached approximately 350,000 tons, up by 14% year-on-year, setting a new record high. As the world’s second-largest producer, China’s influence in the global titanium dioxide 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. Titanium ore prices are now 300 yuan higher than last year, while sulfuric acid prices have increased by 700–800 yuan per ton. This has squeezed profit margins, especially for anatase producers, while rutile profits have also declined. The rapid development of the industry has exposed four major challenges: resource scarcity, environmental protection conflicts, imbalances in product structure, and limited independent innovation capabilities. To address these issues, China's titanium dioxide industry is moving toward a sustainable path focused on large-scale operations, resource efficiency, high-quality products, specialized varieties, integrated upstream and downstream processes, and a cleaner environment. This strategy aims to resolve existing contradictions and ensure long-term stability. First, the industry is promoting coordinated development between the sulfuric acid and chlorination methods. While the sulfuric acid method remains dominant due to its ability to utilize low-grade titanium concentrate and recycle waste acid, the chlorination process offers greater efficiency and environmental benefits. With the completion of a 15,000-ton/year chlorination plant in Jinzhou, the stage is set for broader adoption of this method. In the near future, both technologies will coexist and evolve together. Second, industry restructuring and consolidation are accelerating. Currently, over 70 companies operate in the sector, many of which are small or medium-sized with low concentration and inefficient layouts. Recent efforts include the formation of large groups like Pangang and regional collaborations that aim to scale up production. Future growth will likely shift from internal expansion to mergers and acquisitions, helping to balance supply and demand and strengthen overall competitiveness. Third, the industry is focusing on improving the quality and diversity of raw materials. China’s titanium ore demand exceeds 1.9 million tons annually, but domestic production only reaches 1.1 million tons, leading to a growing shortage. By 2010, domestic satisfaction rates may fall below 50%. To address this, the use of acid-soluble titanium slag and higher-titanium-content ores will become essential. Importing more titanium slag and ore will be necessary, along with developing natural rutile production bases to support future chlorination processes. Fourth, technological upgrades are being pursued through multiple channels. The industry is investing in advanced technologies, adapting foreign innovations, and enhancing its own research capabilities. Establishing science and technology platforms and improving R&D infrastructure will help drive long-term progress and reduce environmental impact. Fifth, the industry is shifting toward market-driven, high-end product development. Companies are adopting brand strategies to diversify product lines and move toward premium applications such as pulp titanium dioxide, high-grade paper coatings, chemical fibers, and food-grade titanium dioxide. Specialized, high-end rutile products are being developed to replace imports, while mid-sized firms focus on niche, high-value offerings. Finally, the industry must adapt to changes in export tax rebate policies. Starting July 1, the new policy will significantly affect exports. While this presents challenges, it also calls for a proactive response, including strategic adjustments in pricing, product development, and energy efficiency, to minimize negative impacts and maintain international competitiveness.

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