Multiple Negative Factors Impact Titanium Dioxide Market Growth in the Asia-Pacific Region
- 04-Aug-2022 5:42 PM
- Journalist: Jung Hoon
The spot offers for Titanium Dioxide in the Asia-Pacific region have demonstrated mixed market sentiments. A confluence of factors from the resurgence of COVID cases in China, uncertainty in terminal demand to halted production, and dropping crude oil values amid the economic slowdown unleashed by the Russia-Ukraine war has significantly undermined the market growth of Titanium Dioxide.
In China, the crippled demand from the downstream paint and coating sector has led to a bearish price trend for Titanium Dioxide. In the domestic market, the pricing dynamics of Titanium Dioxide have witnessed a decline of approximately 5.3% in July 2022, compared to last month's prices. On the upstream price front, the plummeting Sulphur Dioxide values have also prompted a negative cost pressure on the manufacturing costs of Titanium Dioxide. The market players have reported that the oversupply of goods has hampered the supply-demand equilibrium. As a result, the manufacturers have had to reduce their quotations to avoid stockpiling the product. In addition, the Purchasing Manager Index (PMI) also fell to 49.0 last month, further dampening the demand fundamentals. Furthermore, in Thailand, Titanium Dioxide costs have dropped by nearly 6.7% in July 2022 compared to the previous month's prices, owing to adverse development in demand from the terminal industries.
On the other hand, the Indian market has demonstrated a reverse trajectory compared to other Asian Countries, like China and Thailand. As per the latest data, the spot offers for Titanium Dioxide have surged by nearly 3.1%, showing an increment of 110 USD per ton on August 4th, 2022, compared to last week's observed costs.
As per ChemAnalyst, the price trend of Titanium Dioxide may witness a downward trajectory in the near term; the off-season demand from the downstream construction sector will likely hamper the market growth of Titanium Dioxide in the forthcoming weeks. However, market participants have followed a wait-and-see approach to observe a rebound in terminal demand. These facets, accompanied by global recession fears, are anticipated to contribute to the dwindling market value of Titanium Dioxide in the Asia-Pacific region.