The prices of Titanium Tetrachloride in the French market have continued to climb in the month of August 2024, driven by increased demand across various industries and rising raw material costs. This upward trend is in stark contrast to the situation in China, where Titanium Tetrachloride prices have fallen due to a decline in construction sector.

In France, the growing demand for Titanium Tetrachloride in sectors like pigments, coatings, and electronics has pushed prices higher. The surge in titanium ore prices has further exacerbated this upward trend. While inquiries from the construction sector have remained steady, inflationary pressures and supply chain disruptions have also contributed to rising manufacturing costs of Titanium Tetrachloride.

Despite a slight ease in overall input costs inflation, French manufacturers continued to raise their selling prices at a rapid rate, suggesting that existing inflationary pressures has been significant. Supplier delivery times lengthened further, suggesting ongoing disruptions in the supply chain. The continued disruptions to shipping in the Red Sea played a role in the extended delivery times. This will have an impact on the pricing of Titanium Tetrachloride.

On the other hand, the prices of Titanium Tetrachloride have remained low in the domestic market of China. The decline in demand from China's construction sector has led to a high availability of Titanium Tetrachloride, making it challenging for producers to sell their inventories at previous price levels. The surplus has driven down prices as suppliers compete to attract buyers and manage their excess stock.

Considering freight, during last week of August, Freight rates from Shanghai to Rotterdam and Genoa have decreased by 3%, while rates from Shanghai to Los Angeles, Shanghai to New York, and New York to Rotterdam have decreased by 2%. Meanwhile, rates from Los Angeles to Shanghai remained unchanged. Transpacific Eastbound freight costs have somewhat decreased in the week ending August 30th, despite the imminent possibility of an ILA port strike. According to market sources, it is anticipated that East-West rates will stay steady in the coming weeks, which will impact the pricing of Titanium Tetrachloride.

A similar trend was observed in the prices of Titanium Tetrachloride in Japan. Inquiries from downstream construction sector have remained moderate, indicating a lack of significant demand growth. The Chinese market has not shown signs of improvement, further contributing to the decline in international demand. Support from upstream titanium concentrate has been limited, suggesting that the cost benefits for producers were constrained. The combination of moderate demand from downstream construction and a sluggish Chinese market has created downward pressure on Titanium Tetrachloride prices.

ChemAnalyst pricing intelligence predicts that Titanium Tetrachloride prices will decrease in the Asia-Pacific region due to ample supply against moderate to low consumers’ confidence on the market. In contrast, prices are expected to rise in Europe as demand from the construction and automotive sectors are expected to increase amidst existing supply constraints.