European Titanium Dioxide Prices Stabilize Amidst a Slowdown in Terminal Construction Demand
European Titanium Dioxide Prices Stabilize Amidst a Slowdown in Terminal Construction Demand

European Titanium Dioxide Prices Stabilize Amidst a Slowdown in Terminal Construction Demand

  • 22-Jul-2024 5:35 PM
  • Journalist: Emilia Jackson

Hamburg, (Germany): After experiencing a downward trend for the past few weeks, Titanium Dioxide prices have leveled off across the European market towards the July end. Average procurement from the downstream construction and automotive sectors has prompted manufacturers to maintain stable Titanium Dioxide prices in Germany's domestic market. The ongoing macroeconomic challenges in Europe continue to impact the manufacturing sector, resulting in low Titanium Dioxide demand in both residential and commercial markets. Despite increasing raw material costs, average demand from the downstream construction and automotive sectors has dampened market sentiments for Titanium Dioxide.

Market sources indicate that the finished Titanium Dioxide supply has been adequate to meet downstream demand from the terminal industries. However, Titanium Dioxide Manufacturing firms continue to operate below normal capacity levels due to reduced terminal demand. Germany's Manufacturing PMI remained stable at 43.5 in June 2024, down from May's four-month high of 45.4. This indicates a renewed decline in the manufacturing sector at the close of the second quarter, with both output and new orders contracting at an accelerated rate. Industrial production in Germany dropped by 6.7% in May 2024 compared to the same month the previous year, marking the sharpest decline since August 2020. Furthermore, Port workers linked with the German trade union have launched strikes at critical hubs across the country over wage issues. This has compounded shipping challenges in Northern Europe, coinciding with rising labor tensions in France.

On the other hand, in China, the construction slowdown has created an oversupply of Titanium Dioxide in the market, leading to successive price reductions. To stimulate buying interest and manage the surplus inventory, suppliers have been forced to lower their prices substantially. On the upstream side, in June, China's sponge titanium production increased by 2.3% month-on-month to 23,700 metric tons. This rise was due to the gradual release of new capacity from major producers, even as overall market demand remained weak. Consequently, titanium ingot inventories unexpectedly grew, pushing prices down. Additionally, adverse weather conditions in South China have slowed the construction sector, with continuous heavy rains affecting construction projects. This has led to a drop in the business activity index for the construction sector to 52.3 percent, down 2.1 percentage points from May.

According to ChemAnalyst pricing intelligence, Titanium Dioxide prices may begin to decline as demand from the downstream construction and automotive sectors is not expected to show significant improvement in the European Titanium Dioxide market. The market for Titanium Dioxide is anticipated to remain weak beyond the end of the year, with any increase in demand from the construction and automotive sectors unlikely to materialize. Additionally, the demand recovery in the Asian market might also progress in a southward direction amid the monsoon season.

Related News

Chinese Titanium Dioxide Market in Trough No Recovery Expected Soon
  • 21-Nov-2024 10:00 PM
  • Journalist: S. Jayavikraman
Titanium Dioxide Prices in China Show Signs of Potential Increase Despite Weak
  • 07-Nov-2024 9:30 PM
  • Journalist: S. Jayavikraman
SAGA Metals Unveils Encouraging Assay Results from Radar Titanium Vanadium
  • 24-Oct-2024 2:30 AM
  • Journalist: Peter Schmidt
Titanium Dioxide Market Faces the Burden of High Mortgage Rate and Low Demand
  • 14-Oct-2024 5:20 PM
  • Journalist: Xiang Hong