Titanium Dioxide Prices in China Show Signs of Potential Increase Despite Weak Demand

The domestic Titanium Dioxide market in China has experienced a period of price decline and weak demand, with sluggish trading activity reported across downstream sectors. As of mid-October, the market was operating cautiously, with buyers and sellers adopting a wait-and-see approach.

While the overall demand for Titanium Dioxide remained weak, the titanium concentrate market has shown signs of stability, providing a foundation for potential price increases in the Titanium Dioxide sector. The relative stability in the titanium concentrate market helped mitigate the impact of weak downstream demand on Titanium Dioxide prices, as producers were likely to pass on any rising raw material costs to customers. As the supply of titanium ore remained tight in certain regions, this could further support pricing influence for Titanium Dioxide manufacturers, especially if demand recovers in the coming months. Considering the above-mentioned reasons, the prices of Titanium Dioxide 98% FOB Tianjin were settled at USD 1850/MT in the week ending 25th October.

Despite current market conditions, market participants were observing potential catalysts that could drive an increase in Titanium Dioxide prices. Historically, the end of the year tends to see a seasonal uptick in demand as industries such as coatings, plastics, and paper gear up for the new production cycle. This end-of-year recovery in demand might act as a catalyst for higher prices as buyers start to replenish inventories in anticipation of greater consumption in the first quarter of 2025.

Traders and producers were adopting a wait-and-see approach due to weak market sentiment. This cautious behavior often resulted in limited inventory movement, which may aggravate shortages if demand picked up suddenly. If the market shifted quickly and buyers returned to the market with greater urgency, suppliers might be in a position to negotiate higher prices due to their limited stockpiles. This could create a situation where Titanium Dioxide prices increase more rapidly in response to a short-term supply-demand imbalance.

Looking ahead, the price of Titanium Dioxide may climb upward in the domestic market of China. In particular, downstream sector that rely heavily on Titanium Dioxide such as automotive, construction, and packaging could begin to increase purchasing volumes, particularly if the global supply chain remained tight or if Titanium Dioxide production is constrained by higher costs for raw materials. A sudden surge in downstream demand could push Titanium Dioxide suppliers to adjust their prices upward, as manufacturers with limited stockpiles may be in a better position to negotiate higher prices.