Construction Sector Woes Impact Titanium Tetrachloride Prices in Europe, Divergent Trends in Asian Markets

Marseille (France): Throughout the first quarter of 2024, the sluggish performance of the construction sector has dampened market sentiments for various raw materials, including Titanium Tetrachloride. According to a recent survey conducted by the European Commission, inadequate demand in both the residential and commercial sectors is constraining new construction activity in Europe, slowing down the demand for Titanium Tetrachloride. Challenges such as high interest rates, increasing construction costs, and weakening economies are causing a reluctance to invest in new residential and commercial buildings, potentially leading to a decline in construction output in 2024.

The ChemAnalyst database has shown that the price of Titanium Tetrachloride plummeted by approximately USD 35 per ton in the domestic market of France in March. The reduction in inquiries from the downstream construction sector has been responsible for the downshift observed in the price realizations of Titanium Tetrachloride. As per market sources, after experiencing a 1% annual contraction in 2023, France's construction sector is anticipated to face an additional 2.5% decline in real terms in 2024, pressuring the market sentiments for Titanium Tetrachloride. This downturn is attributed to elevated prices of construction materials, higher interest rates, diminished investor and consumer confidence, and a decrease in the issuance of residential building permits.

Furthermore, the reduced prices of energy materials have started to ease the persistent inflationary pressures across the European market. As inflation begins to show signs of moderation, the tightening cycle in monetary policy is nearing its apex. The European Central Bank (ECB) has recently paused interest rate hikes following ten consecutive cycles that began in July 2022. In its most recent statement, the ECB has outlined a medium-term outlook to stabilize inflation at around 2.1%. On the other hand, the prices of Titanium Tetrachloride have remained on the higher end in the Asian markets. The improvement in manufacturing activities following the Spring Festival Holidays in China has boosted the market sentiments for Titanium Tetrachloride. The downstream manufacturers have also improved their procurement levels for Titanium Tetrachloride, leading to a hike in its prices in March 2024.

According to the pricing intelligence of ChemAnalyst, In the European market, Titanium Tetrachloride prices are forecasted to remain bearish as we enter the second quarter of 2024. Despite a decrease in inflationary pressures, the recovery of purchasing power in end-use industries is expected to be gradual. Conversely, Asian markets may experience an uptick in Titanium Tetrachloride prices due to heightened consumption from downstream industries.