Titanium Dioxide Market Faces the Burden of High Mortgage Rate and Low Demand

Titanium Dioxide market fundamentals varied during the early October 2024, while the Chinese market has maintained a relatively stable state, prices in the United States have been under pressure.

The Chinese Titanium Dioxide market has maintained a relatively stable state in the early part of October, primarily due to a decline in trading activity and overall demand during the National Day holiday. Despite the lack of significant price fluctuations, manufacturers have remained cautious, avoiding any major price changes. This approach has allowed for more flexibility in negotiations and price adjustments, accommodating the needs of both buyers and sellers.

Downstream customers and distributors have been closely monitoring the market, waiting for more favorable pricing or economic conditions before making substantial purchases. As a result, actual orders have remained limited, contributing to the overall stability of the market.

The China’s Purchasing Managers' Index (PMI) for the manufacturing sector rose slightly in October, indicating a modest improvement in manufacturing activity. However, the overall economic situation in China remained challenging, with weak domestic demand posing deflationary pressure. The government has responded by implementing stimulus measures aimed at boosting demand and supporting the country's 5.0% annual economic growth target.

The domestic Titanium Dioxide market has been influenced by the stability of titanium concentrate prices and the rise in sulfuric acid prices. While the consistent price of titanium concentrate has provided some relief for manufacturers, the increasing cost of sulfuric acid has added to their production expenses. However, the low domestic demand for Titanium Dioxide and the cautious approach of buyers have created a challenging environment for Titanium Dioxide businesses.

The domestic Titanium Dioxide market in the United States has been experiencing declining prices due to a combination of factors, including excess inventory, a contractionary manufacturing sector, and a slowdown in the construction industry.

At the end of the third quarter, the US manufacturing sector entered a period of contraction, with a significant drop in both output and new orders observed in September. This downturn has led to reduced demand for Titanium Dioxide, a key component in various manufacturing processes.

Additionally, the construction industry has been facing challenges due to higher mortgage rates and increased supply. This has resulted in a worse-than-expected decline in US construction investment, forcing builders to delay new projects. As a consequence, the demand for Titanium Dioxide, commonly used in construction materials, has decreased.

The combination of these factors has created a muted market environment for Titanium Dioxide, with lower levels of procurement. This downward pressure on demand has contributed to the decline in prices for the material.

Looking ahead, the prices of Titanium Dioxide are likely to decline in both the USA and China. As the consumers have a limited demand for Titanium Dioxide, consumption will be minimal.