Prices of Titanium Dioxide rising globally amidst Russia-Ukraine conflict
- 23-Mar-2022 10:24 AM
- Journalist: Francis Stokes
The invasion of Russia on Ukraine continues to create an implicit global pressure on the market of Titanium Dioxide. China, Germany and South Africa are the major exporters of Titanium Dioxide. Surgency in crude oil prices is constantly impacting the costs of Titanium Dioxide. As Titanium Dioxide plays a crucial role in several downstream industries such as paints and coating industry, thus the prices of Titanium Dioxide are indirectly affected by the soaring crude oil prices.
Geopolitical tension in the Eastern European region impacts the global supply chain of Titanium Dioxide. Increased worldwide demand and inadequate supply due to disruption led to surgency in raw materials prices. Due to this, there’s an increment in prices of several downstream industries, including paints and coating industries. Supply disruption is mainly caused due to the conflict aroused between Eastern European countries. With Russia being the second largest exporter of crude oil, its indulgence in the war had created massive pressure over other countries.
The demand for Titanium Dioxide in the Chinese domestic market has remained constant since last month amidst the spring festival and preliminary inquiries from the downstream industries. However, lower inventories and strict implementation of lockdown due to the resurgence of pandemic also supported the quoted offers for Titanium Dioxide in the Chinese domestic market.
As per ChemAnalyst, the market of Titanium Dioxide will follow an upward trajectory due to supply disruption and improvement in demand from the downstream industries, mainly the paint & coating industry. If the conflict between Russia & Ukraine eases, there will be a chance of stabilized market price of Crude oil, indirectly impacting the cost of Titanium Dioxide. Despite this, off-season would also have an impact on price reduction.