Titanium Dioxide Prices Show Divergent Trends in European and Asian Markets in Q1-End

Hamburg (Germany):  As the first quarter of 2024 concludes, a striking contrast in Titanium Dioxide prices is observed between the European and Asian markets. The Asian market sees sustained high prices due to increased inquiries from the downstream construction sector and a bullish Titanium Ore market. Conversely, in Europe, a slowdown in construction activities has dampened demand for upstream raw materials, including Titanium Dioxide. The European market's struggles are compounded by persistently high-interest rates, which have been hindering the construction sector's performance for several quarters. This has further exacerbated the subdued demand dynamics for Titanium Dioxide in the region.

In March, Titanium Dioxide prices in Germany plummeted by USD 30 per ton, reflecting the challenges faced by the country's construction sector. The sector has been severely impacted by elevated interest rates, leading to a slowdown in demand for upstream raw materials. Manufacturers were forced to reduce their Titanium Dioxide offers due to a decline in inquiries from the downstream construction sector. The Construction Purchasing Managers' Index (PMI) for Germany in March dropped to 38.3 from February's 39.1, with housing activity experiencing a pronounced decline and commercial projects contracting at the slowest rate in five months. Civil engineering also saw a significant downturn during the month.

On the other hand, in March, China's Titanium Dioxide prices rose due to heightened demand from the Paints and Coatings industries. According to market sources, Titanium Dioxide output reached 390,000 metric tons, up 3.7% monthly and 17% annually, driven by a backlog of orders and increased production. In addition, rising raw material prices, including Sulfuric acid, and higher crude oil prices also contributed to price hikes. China's Titanium Dioxide demand is expected to remain robust in April, sustaining its recovery momentum. Several production companies increased the price of Titanium Sponge in March, citing high costs and escalating electricity prices. Overall, these factors indicate a positive outlook for the Titanium Dioxide market in China.

According to the pricing intelligence of ChemAnalyst, the Asian markets are anticipated to witness bullish Titanium Dioxide prices in April. The manufacturing firms are cautiously optimistic about improving demand trends, foreseeing a normalization in demand that will drive enhancements in both volume production and pricing. These trends indicate a potential demand recovery for Titanium Dioxide in the second quarter of the year. However, demand from the European market is expected to remain under pressure this month, which could further hinder the positive developments in Titanium Dioxide prices.