Amidst Active Downstream Inquiries, Titanium Dioxide Price Rallies Ahead in Mid-Q1 of 2023

Shanghai, China: With a considerable uptick in downstream inquiries, the trade activities for Titanium Dioxide have picked up significantly in February 2023. As a result, a hike has been observed in the pricing dynamics of Titanium Dioxide. Strong US Dollar, tight monetary conditions in Europe, and pent-up demand in China have been reinforcing the market fundamentals of Titanium Dioxide. One of the important inorganic chemical pigments, Titanium Dioxide, is mainly used in the coatings industry, and the sector alone accounts for 58% of global consumption.

As per the market sources, one of the leading manufacturers of Titanium Dioxide in China, LB Group, has announced that from March 2023, all specifications of Titanium Dioxide will be raised by approximately $145/MT for domestic orders and $150/MT for international shipments. The upshift in the price realizations is mainly attributed to the tight supplies and boosts in procurement from the downstream paints and coatings sector. The market transactions were also settled higher, and the Titanium Dioxide market sentiments have been strengthened in the Chinese domestic market.

On the other hand, the purchasing manager index of the German market remained in the contraction zone in February 2023 and demonstrated a very slight improvement. Although, due to anticipated reduced inflationary pressures, the outlook for German goods improved in February. As per the observed market scenario, the supply chain has been operating adequately, and the downstream demand from the paints and coatings sector is showing signs of recovery. Moreover, as per the president of the European Central Bank, the central bank is still looking to hike interest rates by a half-percentage-point in mid-march.

According to ChemAnalyst, demand for Titanium Dioxide in the coatings market is anticipated to increase after a sluggish performance in the past year. Thus, The price trends will also likely witness a turning point in the coming months amidst a rise in construction activities. In addition, Russia's plan to deepen oil export cuts will exacerbate the input materials prices, which are likely to be reflected in the operating costs of Titanium Dioxide in the forthcoming weeks.