Titanium Dioxide Prices Continue its Upward Trajectory in Germany
- 21-Jun-2022 8:32 AM
- Journalist: Timothy Greene
Frankfurt, Germany: As per ChemAnalyst, the European market has witnessed a positive trend in the prices of Titanium Dioxide. The strong demand for Titanium derivatives from Automotive Paints and Coating sector, coupled with high energy costs, has become the driving factor for the market growth of Titanium Dioxide in the European region.
In Germany, the price discussions have surged to a significant 1.5% in May 2022, owing to a rise in demand from the end-user industries. The paint industry exhibited a strong recovery following easing lockdowns and global restrictions coupled with the seasonal hype from the building and constructions sector, which significantly improved. As a ripple effect, the escalated upstream feedstock prices and soaring demand against the tight supply provoked Titanium Dioxide to hit an all-time high from the beginning of 2022. As per the ChemAnalyst, the FOB prices for Titanium Dioxide 98% Grade have settled for USD 3808 per tonne in Germany.
In addition, the supply disruptions caused due to the Russia-Ukraine conflict have provoked enough pressure on the European gas prices, subsequentially affecting the manufacturers' complete value chain of Titanium Dioxide. The escalated prices of the Titanium Dioxide have levied its cost support in the arbitrage between the European nations, as Germany is amongst the primary producer of Titanium Dioxide in the region, holding a double-digit market share in the Global market. In addition, the German Government also aimed to overcome the energy shortages that occurred as Russia reduced the gas flow to Europe, shortening the feed amount of energy required for the industrial production of various commodities. This development in the market sentiments has weakened the sentiments of the domestic players as the energy shortages will likely result in severe inflation in the upcoming period across the European market.
As per ChemAnalyst, the prices of Titanium Dioxide are further projected to rise in the forthcoming period amidst rising energy costs. It is also noted that the ongoing dispute between Russia and Ukraine has already caused tremendous pressure on the crude oil supply chain. The sturdy stance of the European nations against Russia is likely to hamper their economic interest. However, several European players were likely to be keen on the US Supplies of raw materials and Natural gas. Thus, it is more likely to indirectly impact the price trends of Titanium Dioxide in the upcoming weeks.