In early November, Titanium Dioxide prices saw a significant decline in both China and the United States, signalling a softening trend in the global market. This price drop reflects a combination of weak demand, oversupply, and production constraints that are affecting various industries reliant on Titanium Dioxide.

China, a key player in global Titanium Dioxide exports, played a pivotal role in setting the tone for international pricing trends. Key markets for Chinese exports include Asia, Europe, and North America. As prices dropped in China, importing nations such as the United States have observed a parallel decline in Titanium Dioxide prices, reflecting the interconnected nature of the global supply chain. This price reduction is expected to impact various industries that rely on Titanium Dioxide, such as paints, coatings, and plastics, where it is prized for its whiteness and opacity.

The decline in China’s Titanium Dioxide prices reflected weak demand, driven by off-season conditions and cautious purchasing from the paints and coatings sector. This subdued demand led buyers to adopt a more cautious stance, further contributing to the softening market. Manufacturers, facing pressure to reduce excess inventory, had to adjust their production levels. Additionally, the potential imposition of anti-dumping duties by Brazil, which began in November, targeted Chinese Titanium Dioxide pigments which were used in industries like paints, cosmetics, and food. This has intensified market competition, exacerbating stockpiling of unsold products.

Although Environmental inspections have further tightened supply by causing production cuts, but these measures were insufficient to counterbalance the ongoing demand slump, especially in the decorative paints sector.  On the other hand, the industrial coatings segment, however, has seen some relief, benefiting from China's economic stimulus measures aimed at boosting demand. Despite this, the decorative paints market continued to face challenges, with low consumer confidence and persistent pricing pressures.

Despite steady feedstock prices, Titanium Dioxide prices continue to decline in China. Major manufacturers, such as LB Group, were facing significant pressure due to unsold inventory, with export sales impacted by anti-dumping duties in certain regions. This has contributed to a softening of Titanium Dioxide prices as manufacturers adjust to oversupply and limited export opportunities. As a result, the price of Titanium Dioxide 98% FOB Tianjin was settled at USD 1820/MT in the week ending 15th November.

Similarly, in the United States, Titanium Dioxide prices followed a similar trend as observed in China, due to oversupply and high inventories. Despite steady growth of over 5% in 2024, the U.S. paints and coatings sector remained below pre-pandemic levels, limiting Titanium Dioxide demand. The recovery was slow. Despite steady demand from downstream industries, it was insufficient to offset the excess supply. These factors led to a decrease in Titanium Dioxide prices, as market conditions favored surplus supply.

Looking ahead, Titanium Dioxide prices are expected to continue declining due to sluggish domestic demand and ongoing production constraints. The combination of oversupply, limited export opportunities, and weak consumption across key sectors such as decorative paints is expected to put continued pressure on Titanium Dioxide prices in the coming weeks.