Titanium Tetrachloride Prices Remain Bearish in France Amid Diminished Downstream Demand

For the past two months, the prices of Titanium Tetrachloride have been continuously declining in the domestic market of France. The underwhelming performance of the construction sector across the European market, coupled with the enduring pressures of inflation and sluggish economic growth, has cast a shadow over the prices of Titanium Tetrachloride. This essential compound, Titanium Tetrachloride, widely used in various industrial applications, including the production of titanium metal and pigments, has suffered from a lack of demand stemming from the construction industry's struggles. Additionally, lower electricity expenses have curbed Titanium Tetrachloride production costs, owing to regulated pricing in France and the resilience of nuclear energy, which constitutes two-thirds of the country's power and mitigates LNG price volatility.

The ChemAnalyst database has shown that the price of Titanium Tetrachloride plummeted by USD 35 per ton last month in France. The market players have reported sufficient availability of the finished Titanium Tetrachloride goods to meet the demand from the downstream construction and automotive industries. The persistent inflationary pressures have strained consumers' purchasing power, reducing spending on construction projects. Consequently, the reduced demand for construction materials has rippled through the supply chain, affecting the procurement of Titanium Tetrachloride used in construction-related products. In addition, weak economic growth has also hampered large-scale infrastructure projects, leading to decreased consumption of titanium-based materials.

Furthermore, in July, inflation in France declined to 4.3%, marking its lowest rate since February of the previous year. Meanwhile, the UK economy managed to evade stagnation, achieving a modest growth of 0.2% from April to June. These economic developments affect the construction sector and France's demand for Titanium Tetrachloride.

However, despite the deceleration, inflation in France continues to significantly surpass the European Central Bank's desired goal of approximately below 2%. On the other hand, reduced trade activities within the regional market have prompted freight rates to persist at lower levels across the European market. The decrease in demand for shipping services due to sluggish trade has led to a surplus of available cargo space, resulting in downward pressure on freight rates.

According to the pricing intelligence of ChemAnalyst, until the construction sector gains momentum and economic conditions improve, the prices of Titanium Tetrachloride in France are likely to remain under pressure, reflecting the broader challenges faced by the construction industry in the face of inflation and economic sluggishness. In addition, the volatile energy prices amid the approaching winter season are also expected the manufacturing activities across the domestic market.