Recovery in Demand is Likely to Boost Titanium Dioxide Market Sentiments in February 2023
Recovery in Demand is Likely to Boost Titanium Dioxide Market Sentiments in February 2023

Recovery in Demand is Likely to Boost Titanium Dioxide Market Sentiments in February 2023

  • 15-Feb-2023 2:27 PM
  • Journalist: Patrick Knight

Shanghai, China: The price of Titanium Dioxide has gained momentum entering February 2023. After the spring festival holidays, the trading activities were revamped, and the procurement from the downstream construction sector increased and reinforced the market fundamentals of Titanium Dioxide. In contrast to other regions of the world, the demand for Titanium Dioxide has been stronger in North America.

In the Chinese market, the market participants have reported that the major manufacturers have adjusted their price quotations, foreseeing growth in demand from domestic and overseas markets. Xianghai Technology and CNNC Huayuan Titanium Dioxide Co. Ltd. have increased their prices by 146 USD per ton for domestic regions and 150 USD per ton for international orders of Titanium Dioxide. In addition, labor shortages have also impacted manufacturing activities as the travel period persists till mid-February. On the upstream energy front, with the upshift in demand following the abandonment of the Zero-COVID policy, China's state-owned oil refining giants are accelerating their purchases of Russian crude oil.

One of the leading market players in the Titanium Dioxide industry, Chemours expects the destocking of Titanium Dioxide to continue in the first quarter of 2023, coupled with the normalization of demand picture in Asia and Europe. In the last month, the prices of Titanium Dioxide have remained buoyant in the APAC region. The president of Chemours's Titanium Technologies segment further emphasized that "Sentiment in Europe had become more optimistic versus four months ago when the region was concerned about high energy prices." The energy prices in the German market have started to decline, alleviating the pressure on production costs. However, high prices of finished goods are anticipated to persist despite the slowing rate of inflation for several other reasons, including contractual obligations made to suppliers before the recent deflation and the business's need to preserve profit margins.

According to ChemAnalyst, "the prices of Titanium Dioxide might witness a northwards trend amid improvement in demand fundamentals. The rising inquiries and the boost in economic conditions across the regional markets will also lead to bullish market sentiments for Titanium Dioxide. Furthermore, it is anticipated that monetary policies in western countries will normalize and inflationary pressures will lessen in the coming months.

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