Tronox Idles Dutch TiO₂ Plant Amid Global Market Pressures

Tronox

Company Targets Cost Optimization as Chinese Competition Reshapes Titanium Dioxide Industry

Tronox Shuts Down Botlek Facility in Strategic Response to Market Conditions

Tronox has decided to idle its 90,000-ton-per-year titanium dioxide (TiO₂) plant in Botlek, the Netherlands. The shutdown began on March 6 due to an outage at the plant's chlorine supplier. Rather than restarting the facility, Tronox will reallocate production to its other global sites.

This move comes as part of a broader strategic asset review. The review addresses sustained pressure from Chinese overcapacity and global market challenges that have persisted for over two years. CEO John D. Romano emphasized that the decision aligns with Tronox's goal of optimizing operations and reducing manufacturing costs.

Cost Savings and Global Output Rebalancing

Idling the Dutch plant will result in non-cash write-down costs of $55 million to $65 million. However, Tronox anticipates annual cost savings exceeding $30 million beginning in 2026. These gains are in addition to previously identified savings of up to $175 million by the end of that year.

Despite the plant closure, Tronox remains confident about the demand outlook. The company expects higher TiO₂ sales volumes in 2025, especially in the second half. In Q4 2024, Tronox posted a 3% year-on-year increase in TiO₂ revenue, reaching $533 million. This growth was driven by a 4% rise in shipment volumes, offset slightly by a 1% dip in average selling prices.

Global Presence Ensures Supply Continuity

Tronox will continue to serve customers from its remaining eight TiO₂ pigment facilities. These plants are located across the US, Australia, South Africa, Brazil, and the UK. The company maintains that this shift will not impact its ability to meet customer demand, thanks to its diversified and global production footprint.

As the TiO₂ market evolves, Tronox’s latest decision signals a proactive effort to remain competitive, agile, and cost-efficient amid ongoing structural shifts in global pigment supply dynamics.

China Titanium Ore Prices Fall Amid Weak Dioxide Demand and Rising Supply

Titanium Ore

Titanium Dioxide Sector Contraction Drives Down Concentrate Prices

China titanium ore prices have hit a four-year low as demand from the titanium dioxide (TiO₂) sector weakens. Since 11 March, prices for 46% titanium concentrate dropped by 13% to 1,800–1,830 yuan/t ($249–253/t), ex-works, excluding VAT. The decline follows reduced feedstock purchasing by TiO₂ producers and rising spot availability of medium-grade ore.

Dioxide Producers Cut Output Amid Global Pressure

Anti-dumping measures targeting Chinese TiO₂ exports have shrunk international demand and pressured margins. As a result, several Chinese dioxide producers began lowering feedstock bids or halting production. March exports fell to 185,034 tonnes, down from 196,106 tonnes a year earlier. Rutile-grade prices also dropped to their lowest level since February, ranging from 14,000–15,300 yuan/t.

Ore Production Increases Despite Downward Price Pressure

Meanwhile, domestic supply surged. Sichuan Anning Steel and Titanium raised output using ultra-fine ore recovery tech. Water beneficiation plants also ramped up operations due to strong iron ore prices, boosting titanium ore co-production. Imports rose to 1.37 million tonnes in Q1 2024, further pressuring prices. Sellers are offering discounts, anticipating continued weakness.

The Metalnomist Commentary

China’s titanium ore market is under dual pressure from weakening TiO₂ demand and rising ore output. Unless export demand recovers or domestic production slows, concentrate prices may remain under strain through mid-2025.