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Chemical Price Surge
2025-12-05
A significant wave of price increases is sweeping the global chemical industry as 2025 draws to a close. Here's a snapshot of the movements across key product categories:
1. Titanium Dioxide (TiO2): Led by Giants, Followed by All
Leading producer Longbai Group initiated hikes ($100/ton), immediately followed by nearly all major Chinese players (Jinhai, Daone, etc.) and international giants like Tronox and Kronos.
The reason is severe cost-pressure from soaring raw materials (sulfuric acid, titanium ore) causing estimated production losses.
2. MDI: Supply Shock from Major Plant Turnarounds
BASF, Covestro, and Huntsman announced price increases in Asia. This follows major supply disruptions.
Planned, large-scale maintenance shutdowns are the core reason. Wanhua Chemical's 55-day turnaround at a key plant alone will reduce global supply by 15%. Further shutdowns by Covestro and BASF in December will tighten the market further, affecting downstream products like TDI.
3. Lithium Battery Materials: Supercharged by Storage Demand
Prices for key materials like vinylene carbonate, ethylene carbonate, and Lithium Hexafluorophosphate have hit new cyclical highs, with some rising over 227% in four months.
Explosive, above-expectation growth in energy storage demand is the primary engine. The anticipated scale-up of solid-state battery technology by 2026 is also providing long-term price support.
4. Organic Silicon: Tight Supply Meets Cost Push
Dow's announcement of a 10%-20% price increase for key silicone products (via its Xiameter line) signals a broad market move.
Key Drivers: A tight supply-demand balance, with factory orders booked well into December. The cost push from upstream raw materials is being effectively passed down to downstream sectors like construction sealants and automotive.
5. Sulfuric Acid & Sulfur: The Foundational Cost Driver
Sulfur prices have skyrocketed over 157% YTD, pulling sulfuric acid prices up by 34% in key regions like Shandong.
A triple squeeze of supply contraction, critically low inventory, and surging demand from the new energy. Sulfuric acid's rise is a primary cost driver for many downstream chemicals, including TiO2.
6. Other Specialties: The Ripple Effect
Cost pressure is spreading widely. Products like Melamine, Acetic Acid & Esters, Acrylic Butyl Ester, and Chloroform are all seeing synchronized price increases due to tight supply and strong cost transmission from upstream.
The Bottom Line:
This is not an isolated event but a broad-based adjustment driven by intertwined factors: soaring costs, strategic supply reductions, and resilient demand. The "price increase letter" has become the dominant industry strategy to counter losses and navigate a volatile cost environment. With major turnarounds and persistent inflationary pressures, this trend is likely to extend into 2026.
For businesses downstream, proactive planning, strategic inventory management, and close supplier communication are essential to mitigate the impact of this industry-wide cost reset.
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