1. May Market Summary: Firm Prices, Sluggish Domestic Demand & Strong Export Backing
Titanium dioxide prices remained high in May. Domestic demand from coating and construction industries was slow, with traders and end users delaying stock replenishment. Strong export growth in the first four months and high costs of sulfur and sulfuric acid help manufacturers maintain current prices and attempt price hikes. Domestic production capacity continues to expand; the approaching traditional off-season worsens domestic oversupply. High-end chloride-process TiO₂ gains stronger overseas competitiveness with fast-growing exports and expanded domestic output.
2. Manufacturers' Price Strategy Cannot Sustain Long Term
Producers boost market confidence and drive purchases via rumors of price increases. However, lacking solid domestic demand, high prices supported merely by exports are unsustainable. Prices will gradually adjust to a reasonable level balanced by supply and demand in the future.
3. June Market Forecast
Prices will stay steady at high range during the upcoming off-season. Buyers only place urgent orders after depleting existing inventory, leading to mild but limited demand recovery. Manufacturers are caught between high raw material costs and weak downstream purchasing. Although rumored price hikes may temporarily prop up market mood, actual transaction prices are negotiated separately based on order quantity and payment terms.
