The challenges facing the titanium dioxide (TiO2) industry in 2025 have already become inevitable. The days of frequent price hikes—six times a year—are over, and the “shoe has dropped” with the EU’s decision to impose anti-dumping duties on Chinese titanium dioxide.
Recently, EU member states approved the decision to impose final anti-dumping duties on titanium dioxide imports from China. This means that starting January 11, 2025, the EU will impose anti-dumping duties on Chinese TiO2 for a period of five years.
The specifics are as follows: Anhui Jinxing Group will be charged €0.25 per kilogram, while Longbai Group will face €0.74 per kilogram. For companies deemed cooperative during the investigation, the rate will be €0.64, while other companies will be subject to the higher €0.74 rate. Thanks to the successful defense by Chinese companies, the anti-dumping duties have been reduced to a range of 11.4%-32.3%, a 7% decrease from the earlier announced figures. Despite the reduction, this will undoubtedly exacerbate the already tense trade relations between China and Europe. Countries such as Brazil, India, and Saudi Arabia are also investigating anti-dumping measures on Chinese titanium dioxide, effectively “closing the door” for China’s TiO2 industry.
China holds the largest titanium dioxide production capacity globally, with 4.16 million tons produced in 2023, accounting for 55% of global capacity. That year, China exported 1.64 million tons, which had a significant impact on TiO2 markets in the EU and elsewhere, leading to the closure of several overseas TiO2 plants, including those of Yunnan Tin, Chemours, and others. Once the anti-dumping duties are finalized, domestic companies will be left uneasy, and European paint manufacturers are already in a state of panic.
A European coatings company, Teknos, proposed phased anti-dumping duties on TiO2, arguing that this approach would help the EU’s paint and coatings industry absorb the additional costs of higher titanium dioxide prices, maintaining competitiveness. Teknos warned that switching to new TiO2 suppliers would take at least 18 months if anti-dumping duties are enforced.
The European Coatings and Printing Inks Federation (CEPE) has urged EU member states to reject the anti-dumping duties, stating that they would severely affect the local coatings industry, particularly smaller companies and the construction sector. The duties could threaten the survival of the €33 billion European coatings industry, reduce competitiveness, and harm the market position of European manufacturers.
Currently, international markets like the EU are imposing anti-dumping duties on Chinese TiO2, making exports more difficult. This export reduction, coupled with the overcapacity in China, is driving down TiO2 prices. Many companies are already reporting losses. For example, Vanadium Titanium Corporation saw an 82.74% drop in net profits for Q3; Jinpu Titanium’s revenue decreased by 4.10%, with a net loss exceeding ¥50 million; and Anada’s Q3 revenue dropped by 14.85%, with a net profit of only ¥40.83 million, down 54.68% from the previous year. Overcapacity, export obstacles, rising tariffs, and higher costs have all compounded the industry’s struggles. Even the traditionally strong “golden September and silver October” season has been lackluster. More than 20 TiO2 companies have suspended operations, bringing production to its lowest point of the year, and prices are approaching historic lows.
In November, several more companies are expected to reduce or stop production, and it is anticipated that maintenance plans will continue into the holiday season before the Lunar New Year. Early November saw prices drop by ¥200 per ton. Currently, many TiO2 manufacturers are selling close to cost price, with some even reporting small losses. If the US imposes an additional 60% tariff under a potential new administration, the outlook for TiO2 in 2025 will be even more difficult.
