China’s Titanium Dioxide Exports to EU Face Sharp Decline Amid Steep Anti-Dumping Duties

China’s exports of titanium dioxide to the European Union are expected to see a significant downturn for the remainder of 2024 following the EU’s imposition of provisional anti-dumping duties. Announced in July, these duties include a 39.7% tariff on LB Group, 14.4% on Anhui Gold Star Group, 35% on other cooperating companies, and 39.7% on all others. The unexpectedly high tariffs have made it financially untenable for many Chinese exporters to continue their shipments to Europe, leading to widespread suspensions since July.

Exporters have reported substantial losses, with some companies halting shipments altogether. A representative from a titanium dioxide producer in Panzhihua noted, "Exporting to Europe would incur an anti-dumping duty of $800 per ton, resulting in losses even if buyers share part of the duty." Most exporters are reconsidering their position and are unlikely to resume shipments before mid-January 2025 when the European Commission might reassess the duties.

In response to the European downturn, some Chinese firms are redirecting their focus to emerging markets, including Cuba, Liberia, Botswana, and Brunei. This shift comes as global demand softens, with export prices for rutile-grade titanium dioxide plunging to their lowest levels in a year due to reduced European demand and fierce domestic competition.

Despite a 14% increase in overall exports of titanium dioxide during the first half of 2024, rising from 855,272 tons to 972,487 tons year-on-year, the current trade environment poses challenges for Chinese exporters. Exports to Europe, which accounted for 22% of the total, saw significant growth in early 2024 but now face uncertain prospects due to the new duties.