Marseille (France): The ChemAnalyst database indicates that Titanium Tetrachloride prices have remained low in the domestic market of France. In recent quarters, the poor performance of the construction sector has significantly influenced the market dynamics of key raw materials in the European region. Market participants have been wary of declining sales in end markets, as inflationary pressures have dampened the purchasing enthusiasm of end-use industries. Due to the sluggish economy, high interest rates, and increased uncertainty, industry stakeholders have hesitated to embark on new projects. As a result, maintaining a proper balance between sales and inventory in Titanium Tetrachloride production has become increasingly challenging.

In May 2024, a decrease of USD 45 per ton has been observed in Titanium Tetrachloride price realizations with the expected decline in the coming weeks. Demand from downstream industries such as construction and automotive has not improved significantly, as noted by market participants. In anticipation of declining procurement volumes from these sectors, Titanium Tetrachloride manufacturers have kept their prices low to maintain market balance. Support from upstream Titanium Ore has also been limited, though its availability has been sufficient to meet downstream Titanium Tetrachloride industry demand.

Furthermore, the Construction PMI slightly increased in May 2024, picturing improvement in the construction output in the month. However, it still signals significant contraction and remains among the lowest levels in 11 years, reflecting two years of declining construction activity.

On another note, last month, The Chemours Company announced compliance with a government request to temporarily reduce water intake, leading to a production pause at its Altamira Titanium Dioxide manufacturing facility. This move aimed to conserve water for surrounding communities amid severe drought in much of Mexico. The compliance has affected Titanium Tetrachloride (TiCl4) production, a crucial intermediate in the chloride process for Titanium Dioxide (TiO2) production. The facility's shutdown disrupted the TiCl4 supply chain, potentially impacting TiO2 availability and production until operations can resume. However, with easing constraints, The Chemours Company announced this week that the Mexican government has lifted restrictions, enabling normal operations to resume at its Titanium Dioxide (TiO2) manufacturing facility in Altamira, Mexico.

According to ChemAnalyst pricing intelligence, Titanium Tetrachloride prices are expected to decline across the regional market. The slowdown in the European construction sector is likely to exert downward pressure on Titanium Tetrachloride price realizations in the coming weeks. The weakening demand pressure is expected to be determining factor in the final prices, however construction industry is showing signs of improvement.