Sentiments of Titanium Dioxide Facing Several Uncertainties Due to Fluctuating Market Dynamics
- 07-Mar-2022 6:02 PM
- Journalist: Francis Stokes
Titanium Dioxide is already a known commodity with numerous applications for its end-use sectors, in which a large proportion is used in the food industry for the manufacturing of colours, preservatives, sweeteners, emulsifiers, thickeners, etc. Earlier in February, under the EU regulations 1333/2008 on food additives and Commission Regulations (EU) 2022/63, with amending some annexes. The use of Titanium Dioxide (TiO2 – E171) as a food additive is no longer permitted in Europe. This regulation was published with a 6-month transition period till August 2022, as most additives were only permitted additives in food were subject to specific quantitative limits. This development in the market trend had laid out an impact on the offers of Titanium Dioxide globally, although this event made Calcium Carbonate a stand-out product for the replacement of Titanium Dioxide, by avoiding its negative effects on consumption and fulfilling the same characteristics as an alternative.
Whereas, the recent Geopolitical turmoil between Russia and Ukraine caused havoc in the international crude oil market. Which laid out a direct impact on the essential raw materials for paint manufacturing, as 50% of the total production cost is focused on the quotations of raw materials. Titanium Dioxide Rutile Grade is widely used in the paint industry, and the uncertain market dynamics clouded numerous uncertainties in the overall market sentiments of the Titanium Dioxide market sentiments. In repercussions, several major players across the globe were intended to raise the offered quotations for Titanium Dioxide, and numerous players already announced the price increment from April onwards.
As per ChemAnalyst, the Titanium Dioxide current offered prices in several locations were already staggering at a peak of 5-year, which further coupled with the prevailing sentiments in the market. Whereas, the conflict in eastern Europe imposed a surge in duties which further act as additional cost support besides all-time high freight cost in the International market.