LB Xiangyang titanium dioxide suspension highlights China’s softer TiO2 demand

LB Xiangyang

LB Xiangyang titanium dioxide suspension follows an accident at its sulfuric acid line. As a result, the LB Group subsidiary has halted output, yet market players see limited immediate impact because inventories remain high and demand stays weak.

LB Xiangyang operates 180,000 t/yr of titanium dioxide capacity using the sulfuric acid process. Therefore, the outage removes about 12% of LB Group’s total 1.51mn t/yr dioxide capacity, underlining the unit’s strategic role inside China’s largest titanium dioxide producer.

Limited market impact from LB Xiangyang outage

Market participants expect only a modest effect from the LB Xiangyang titanium dioxide suspension. Downstream demand from paints, plastics, paper and printing inks remains sluggish, while spot availability stays ample across China.

Weak domestic consumption has already encouraged producers to rely more on contract volumes and price competition. However, customers still resist restocking aggressively, as construction, consumer goods and packaging sectors face slower growth and tighter budgets.

LB Group’s production data also show that the group continues to run its broader TiO2 system. In January–June, the company produced 682,200t of titanium dioxide, up 5% year on year, including 463,500t via sulfuric acid and 218,700t via the chlorination process.

Meanwhile, sales reached 612,000t during the first half, rising 2.1% from a year earlier. This included 427,400t of sulfuric acid product and 184,600t of chlorination product, both slightly higher year on year and signaling continued market absorption despite price pressure.

China titanium dioxide exports weaken as demand slows

China’s titanium dioxide export trend reinforces the picture of softer global demand. Between January and July, China exported 1,051,372t of titanium dioxide, down 7.2% from 1,132,664t in the same period of 2024.

Exports of sulfuric acid route material also show a mixed pattern. In July, China shipped 110,287t of sulfuric acid TiO2, down 18% from 134,187t a year earlier. However, volumes still rose 2.6% from 107,519t in June, suggesting some short-term restocking abroad.

For global buyers, the LB Xiangyang titanium dioxide suspension mainly raises operational questions rather than supply security fears. Therefore, buyers will likely use the event to negotiate harder on prices, while monitoring whether any extended outage tightens specific grades later.

The Metalnomist Commentary

The LB Xiangyang titanium dioxide suspension underlines how a significant capacity loss can still feel manageable in an oversupplied market. However, if Chinese demand stabilizes while exports remain soft, any prolonged outage could accelerate a gradual rebalancing of TiO2 inventories and support prices at the margin.