During the fourth week of February, the Titanium Dioxide market in the USA saw an increase of 0.7%, following the stable to softer trend observed before. Market players attributed these hikes to supply reductions as well as rising costs, amid ongoing concerns over producers ‘profit margins. Titanium Dioxide finds its usage as a white pigment for imparting brightness in the paints and coatings sector. With automotive and construction being its key end-consumers, the demand fundamentals from the same affect the pricing trajectory of Titanium Dioxide.

To understand the key factors driving the upward momentum in Titanium Dioxide, let’s have a look at the developments in the key exporting nations including China.

The Titanium Dioxide market in China has been witnessing significant hikes in prices. The upward trend in prices was initiated by leading manufacturers including Longbai Group Co. Ltd. who announced price increases of 300 Yuan per ton domestically, and USD 50 per ton internationally.  This action set off a series of comparable price hikes from more than twenty additional Chinese producers, including Shandong Dongjia Group and China Nuclear Huayuan Titanium Dioxide. Market sentiment remained positive, fueled by the ongoing tight supply and expectations of sustained price increases.

The market saw a robust start after the Lunar New Year holidays, driven by rising futures, higher production costs, and improving demand. Adding to the impact of rising costs and futures was the steady improvement in demand, as buyers returned from the Spring Festival holidays with renewed interest amid the ongoing peak season and an optimistic outlook. More buyers entered the markets to restock materials, and the number of concluded deals increased.

The rising costs of Titanium Dioxide were also felt by the end-use industries including construction and automotive. Rising prices of materials including Titanium Dioxide were driving higher construction expenses faced by the construction industry. These elevated expenses were reflected in the Engineering and Construction Cost Indicator, which showed a little rise in February. Titanium Dioxide has already been facing the burden of rising costs. Adding fuel to the fire was the implementation of tariffs on the automotive industry. This may likely add up to the manufacturing costs, thus reducing production and translating into reduced demand for Titanium Dioxide.

Recently, President Donald Trump has announced that a 25% tariff would be levied on automobiles, effective April 2, 2025.  Given the fact that in the past, foreign markets including the EU, imposed higher tariffs on cars imported from America. This resulted in resentment among the domestic manufacturers who considered this act unfair, as it deprived them of their fair share of competitiveness.  The introduction of these tariffs is anticipated to encourage domestic production facilities in the US, thus reducing reliance on international imports. These tariffs were seen as a continuation of the 10% tariffs imposed on all Chinese imports. This move would likely translate into steady consumption of Titanium Dioxide within the domestic market.

As per ChemAnalyst, the Titanium Dioxide market in the USA offers an optimistic outlook. The above-mentioned developments will continue to support prices at elevated levels in the near term.