Recovery in Downstream Demand Accelerates Titanium Dioxide Prices in German Market

Hamburg, Germany: The price of Titanium Dioxide has been observed to be on the higher end in the middle of the first quarter of 2023. The destocking activities have limited the market growth of Titanium Dioxide in the past few months of 2022 and have continued in early 2023. However, with inquiries from the downstream paints and coatings sector rising at a moderate pace, the market fundamentals of Titanium Dioxide have strengthened in the German market.

As per the data reported by the ChemAnalyst research team, the prices of Titanium Dioxide increased by USD 42 per ton in the domestic market of Germany on a FOB basis. The demand from the downstream automotive and construction sectors was recovering after facing successive reductions in procurement volumes over the last few quarters. Furthermore, on the supply side, there was an unimpeded movement of finished goods with improved container availability and low transport costs. However, the inflationary pressures were not over yet, and they are now being driven by higher wages coupled with high input costs. In addition, slashed output at Germany’s Schwedt oil refinery has intensified the pressure on the operational costs of Titanium Dioxide.

On the other hand, last month, the market players were cautious about the weak overall sales of various petrochemicals and specialty chemicals, including Titanium Dioxide, weakening the export outlook. The composite Institute for Economic Research (IFO) index of export expectations demonstrated a reading of 3.8 in February, down from 4.1 in the previous month. In addition, crippled trade activities are expected to stabilize in the forthcoming months rather than demonstrate a steep rise.

According to ChemAnalyst, the prices of Titanium Dioxide are anticipated to sustain buoyancy in the coming months. The president of titanium technology at Comu, Ed Sparks, has also emphasized that a rebound in demand from China and Europe could lead to a recovery in Titanium Dioxide by 2023. The reopening of China in Asia will boost the market for Titanium Dioxide and act as a driving force for the reinforcement of global economies.