Shanghai (China): Titanium Dioxide prices have edged lower amid waning demand from the downstream paints and coatings sector. Central banks in the US and other developed nations have increased the interest rate to tame inflation, dampening the commodities market, including Titanium Dioxide. The number of COVID cases has also increased in China, and Beijing has imposed a prolonged lockdown in several places.

Last month, Commodities exports from China fell by 8.7% yearly, the most since February 2020. Pandemic restrictions and weakening global demand have obstructed economic activities. As a result of sluggish factory activity and a downturn in upstream raw material costs, the pricing dynamics of Titanium Dioxide has been contracted by approximately 1.2% in November. The price decline of Titanium Dioxide in the domestic region of China has been reflected in the quotations for importing countries since China is the top producer of Titanium Dioxide. In addition, the freight charges across Asia’s major trade routes have also been lowered.

Furthermore, in the USA, the Titanium Dioxide market was narrowed down. The ChemAnalyst database has shown that Titanium Dioxide prices have demonstrated a plunge of USD 40 per ton on an m-o-m basis. The downstream paints and coatings transactions were average, and the market operated at low levels. On the other hand, the rise in TTF natural gas values has impacted the manufacturing costs of Titanium Dioxide in Germany, and the prices jumped despite weak demand fundamentals.

As per ChemAnalyst, the prices of Titanium Dioxide might enter a downward trajectory amid the off-season demand from the paints and coatings sector in the near term. However, according to the latest insights, a leading market player, Chemours, announced that the price of Titanium Dioxide will rise by USD 200 per ton at the start of the new year. This announcement may lead to bulk procurement of Titanium Dioxide by traders at the current low- price and strengthen the market sentiments for Titanium Dioxide.