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Contrary Price Trend for Titanium Dioxide in European and Asian Markets

Contrary Price Trend for Titanium Dioxide in European and Asian Markets

Contrary Price Trend for Titanium Dioxide in European and Asian Markets

  • 10-Oct-2022 4:00 PM
  • Journalist: Nicholas Seifield

The rapid development in energy prices has been pressuring the manufacturing costs of Titanium Dioxide in the European Region. Titanium Dioxide is crucial in various industrial applications and consumer goods sectors, such as paints, plastics, cosmetics, paper, rubber, ceramics, and textiles.

One of the leading manufacturers of Titanium Dioxide, Tronox, has reported that "natural gas prices have continued to rise throughout Europe, resulting in increased energy costs at our plant in the UK and energy surcharges on process chemicals at our European sites." However, the orders from downstream paint and coatings industries have remained relatively flat in the Asia-Pacific region.

Furthermore, the ChemAnalyst database shows that the price trend of Titanium Dioxide escalated by approximately 5% across the major economies of Europe like Germany, Belgium, and France last month. The inflationary pressure has subdued the market sentiments toward Titanium Dioxide. However, on the downstream front, the regional economic downturns have adversely affected the demand fundamentals of end-user industries. The ratio of sales to inventories has been mismatched.

On the other hand, in China, the impact of power cuts eased towards the end of the third quarter, and the cost support from upstream raw materials was also less intensive. The mining output in North China has also returned to normal levels. However, the spot transactions have weakened significantly, and the inventory levels have risen to a higher level. Due to the weak terminal demand and the slow release of downstream paints and coatings, the high-priced Titanium Dioxide was less preferred among the buyers. As a result, a significant plunge of nearly 9% was observed in Titanium Dioxide offers in the domestic region of China in September. Similarly, the Titanium Dioxide price plummeted by 8.2% in the same timeframe in South Korea.

As per ChemAnalyst, Titanium Dioxide prices will remain under pressure against the backdrop of increasingly challenging economic conditions. High energy costs buffet the European region, and the downstream manufacturing firms' production capacities have been affected extensively. This volatility in energy prices is anticipated to impact the price value chain of Titanium Dioxide and its derivatives in the near term. However, the Indian market will likely witness an upward demand shift due to upcoming festivities.

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