Zheng Quan Ri Bao·2025-10-09 16:09Core Viewpoint - The titanium dioxide industry is currently facing significant challenges, including price declines, operational pressures on small and medium enterprises, and a need for consolidation and strategic acquisitions to enhance competitiveness and adapt to market changes [1][2][3]. Industry Overview - As of October 9, titanium dioxide prices in South China remain at 13,300 yuan per ton, unchanged from the end of September, indicating a low point in the price cycle [1]. - The price of titanium dioxide has decreased from 20,400 yuan per ton in June 2021 to the current level, leading to operational difficulties for companies in the industry [1]. - The industry is experiencing a deep adjustment period, with small and medium enterprises particularly vulnerable due to their weaker competitive positions [1]. Demand and Market Dynamics - The titanium dioxide industry has seen a decline in performance, with companies like Jinfeng Titanium Industry Co., Ltd. reporting negative net profits for three consecutive years, totaling over 500 million yuan in losses [2]. - Factors contributing to the industry's struggles include high costs, weak demand, and intense price competition, exacerbated by a supply-demand imbalance and a sluggish global economic recovery [2]. - In August, signs of recovery emerged as several companies announced price increases, marking the first significant price hike of the year, driven by rising production costs and marginal improvements in downstream demand [2]. Strategic Responses and Mergers - Leading companies are actively pursuing mergers and acquisitions to navigate industry challenges. For instance, Huayun Titanium Industry has made significant acquisitions, including a 70% stake in Guangnan Chenshang Mining Development Co., which is crucial for securing raw material supply [3][4]. - The company has also acquired a 35% stake in Guangxi Detian Chemical Recycling Co., enhancing its production capacity and competitiveness in the titanium dioxide market [3]. Industry Transformation - The industry is shifting from a focus on capacity expansion to value creation, emphasizing research and development to build technological barriers and enhance high-value products [6]. - Companies like Longbai Group have invested over 3 billion yuan in R&D over the past three years, achieving significant technological advancements [6]. - The implementation of "going global" strategies is also being pursued, with companies establishing overseas production facilities to mitigate trade barriers and enhance brand presence [6]. Competitive Landscape - The competitive landscape is evolving, with companies like Zhongke Huayuan Titanium Dioxide Co., Ltd. forming long-term partnerships with major overseas clients, leveraging stable supply and product quality [7]. - The integration of the industry chain is seen as a way to build a solid competitive advantage and enhance core competencies during this period of deep adjustment [7].