Rising costs and decreased supply of raw materials keep the price of titanium dioxide (TiO2) rising in China, according to China Chemicals Market (CCM). The overall business of TiO2 will be stable in the next months.

Rutile TiO2 and anatase TiO2 rose 29.4% year-over-year and 32.1%, respectively, in December 2016. This increase led to an average price of $2,249/t for rutile TiO2 and $1,956/t for anatase TiO2. While rutile TiO2 had been increasing almost steadily since the beginning of 2016, anatase TiO2 prices remained stable until November. In December 2016, the price of anatase TiO2 jumped 22.3% compared to the previous month. This development was mainly due to production reduction of titanium ore and TiO2 manufacturers, who were operating in China’s Panxi area. The reduction is reportedly part of the governmental plan to increase environmental protection and the quality of air and water.

Even if the reduction continues, it will reportedly be balanced out by sinking domestic demand for TiO2, decreased export value, and a lower activity in the TiO2 downstream industry. CCM is expecting a stable development of the TiO2 price in the middle-term.

Looking at the raw materials for TiO2 production, many are also showing an increasing price trend. The biggest rise can be seen for titanium slag (74-76%). The price increased more than $50/t in Sichuan province, with a smaller increase in Yunnan and Hebei provinces, due to the price increase of titanium ore.

For more information, visit www.cnchemicals.com.