EU's Antidumping Tariffs on Chinese Titanium Dioxide Trigger Industry Tensions

Last Wednesday, EU member states approved the imposition of final antidumping duties on titanium dioxide (TiO2) imports from China. The vote revealed deep divisions, with 15 member states in favor, 8 opposing, and 4 abstaining. TiO2, widely used as a white pigment in paints, will be subject to duties starting January 11, 2025, for a duration of five years.

The European Commission proposed tariffs of €0.25 per kilogram for Anhui Jinhe Group and €0.74 for Lomon Billions Group. Companies cooperating with the investigation will face a duty of €0.64 per kilogram, while all other firms will be charged €0.74.

November 2023: The EU launched an antidumping investigation into Chinese TiO2 imports.

July 2024: The European Commission issued preliminary findings, recommending duties based on dumping margins: 39.7% for Lomon Billions Group, 14.4% for Anhui Jinhe Group, 35% for other respondents, and 39.7% for non-cooperating firms.

November 2024: In its final disclosure, the EU reduced duties by approximately 7% and confirmed no retrospective application. The revised rates are:

- Lomon Billions Group: Reduced from 39.7% to 32.3%.

- Anhui Jinhe Group: Reduced from 14.4% to 11.4%.

- Other respondents: Reduced from 35% to 28.4%.

- Non-cooperating firms: Reduced from 39.7% to 32.3%.

The European Council of Paint, Printing Ink, and Artists' Colours Industry (CEPE) strongly opposed the tariffs, urging member states to reject them. CEPE emphasized that TiO2 is a core raw material for paint manufacturers, accounting for 40% of raw material costs and 20% of finished product costs. Tariffs on Chinese TiO2, CEPE argued, would severely impact local paint producers—particularly small businesses and related industries such as construction—far outweighing any short-term relief for European TiO2 manufacturers.

CEPE warned that rising production costs could jeopardize the survival of the €33 billion EU paint industry, reduce the global competitiveness of European firms, and threaten market share by diminishing exports.

According to Eurostat, China exported over €500 million worth of TiO2 to the EU in 2023. Chinese customs data revealed that TiO2 exports from January to December 2023 totaled 1.6416 million tons, a 16.77% year-on-year increase.

However, export patterns are shifting. Since August 2023, antidumping investigations launched by the EU, Brazil, India, and Saudi Arabia have reduced TiO2 exports to Europe. Data from the first 10 months of the year shows significant declines in exports to Belgium, Italy, and the Netherlands from June to October compared to the first five months. Meanwhile, exports to India, Brazil, and Vietnam have risen as Chinese suppliers adapt to changing demand.

Despite ongoing antidumping probes in India and Brazil, producers are reportedly stockpiling inventory or accelerating shipments ahead of final rulings. This has helped maintain Chinese TiO2 export volumes at relatively high levels.

The EU’s antidumping tariffs reflect broader trade tensions as global supply chains realign. While Chinese TiO2 exports face increasing scrutiny, the long-term effects of these measures on both Chinese exporters and European industries remain uncertain. At the same time, these shifts are driving diversification and reshaping trade flows in the global TiO2 market.