Amidst Tight Supplies, Titanium Dioxide Prices Rally Upwards in European Markets

Prices for Titanium Dioxide in Europe have continued to rise dramatically in Q4, due to rising feedstock and energy costs, as well as increased demand from downstream industries such as paint, cosmetics, adhesives, and medicines.

On the back of regional scarcity, leading European producers including Tronox announced to raise their Titanium Dioxide (TiO2) offered rates. FD NWE price for TiO2 is lying in the price range USD 3400-3850 per tonne for Q4 deliveries. Unfavourable exchange-rate factors and high freight along with production issues   hampered the supply side, as Tronox has implemented force majeures at its Botlek and Stallingborough facilities.

The European Titanium Dioxide (TiO2) market has seen an all-time high price increments since Q1 2021 which may be compounded by seasonal preparations and declining Asian imports, as well as limited stockpiles. Coupled with restricted supplies and strong downstream demand, producers were forced to impose price hikes in late October.

As per ChemAnalyst, “the bullish momentum in the European titanium dioxide (TiO2) market is expected to continue into Q1 2022, due to already high prices and low TiO2 stock levels in Europe, which may get worse if the lack of Asian imports continues. Moreover, seasonal restocking, and strong downstream enquiries are likely to keep the demand firm for Titanium Dioxide and its pigments in the coming months. Producers are closely monitoring the current coronavirus situation across the globe as cases have begun to spike since the past week due to the Omicron variant, which could impact production levels if restrictions are reinstated”