Global Titanium Dioxide Market Accelerates on the Backdrop of Escalated Input Costs
- 26-Aug-2022 3:33 PM
- Journalist: Peter Schmidt
The price discussions of Titanium Dioxide are trending upwards in the global region, backed by surged input costs. The increased international inflation rates and adverse currency trends have impacted consumer sentiments and created enough pressure on the manufacturing indices of several chemicals, including Titanium Dioxide.
In India, Titanium Dioxide prices have consistently dropped in the last two weeks; however, this week, the price trends have gained momentum and changed their existing trajectory. The latest data shows that the price dynamics of Titanium Dioxide have escalated by approximately 1.5% compared to last week's costs, as observed on August 26, 2022. Furthermore, the Chief Development Officer of Toray Industries has suggested incorporating IR-reflective pigments, like Titanium Dioxide, into construction and road-building materials to prevent the absorption of solar rays by surfaces amid growing environmental concerns.
Furthermore, the current market scenario has depicted that, until August 25, one of the leading market players in China, Sichuan, has executed a production shutdown due to disrupted power supply-demand fundamentals. The sweltering temperatures and a diminution in rainfall flowing into the Yangtze River have resulted in reduced water levels for hydroelectric power plants, curtailing energy production. The exacerbated power supply crunch has severely impacted the manufacturing costs of Titanium Dioxide in the domestic region, driving the price realizations for importing countries.
On the other hand, Europe's largest economy, Germany, has been battered by the sharp increase in energy prices, negatively affecting the market sentiments of Titanium Dioxide among the major manufacturing firms. The compact gas supplies from Russia's Gazprom amidst another round of maintenance have worsened the supply fundamentals of the input material in the regional market. Furthermore, the ongoing summer heat wave has compounded the energy crisis by reducing water levels and disrupting key transportation routes for energy shipments. In addition, the data shows that inflation has soared to 7.5% in Germany, a record high amid high energy prices. However, the market players have informed that the demand outlook was slower-than-expected amid the severe global economic challenges.
As per ChemAnalyst, the long-term growth prospects of the downstream paint and coating industries will fuel the market growth of Titanium Dioxide across the nations, and the price trend will likely escalate in the global region. In addition, the oscillating energy price value chain is anticipated to impact the market fundamentals of Titanium Dioxide in the forthcoming weeks.