For the Quarter Ending September 2024
North America
In Q3 2024, the North American Titanium Tetrachloride market experienced a mixed trend. The third quarter of 2024 has been a challenging period for the titanium tetrachloride market, with a mixed trend in prices largely driven by the sluggish performance of the construction sector.
While a potential interest rate cut in September offered some hope for improved market conditions, its impact on the construction sector and, consequently, titanium tetrachloride demand, is likely to be limited in the short term. The construction sector's slow performance, particularly in North America, has been a primary driver of the decline in titanium tetrachloride demand. The stagnant demand for paint and coatings, coupled with rising regulatory costs, has weighed on the overall market sentiment.
High mortgage rates have acted as a significant barrier to construction activity in the United States, further contributing to the decline in demand for titanium tetrachloride. While an interest rate cut provided some relief, it was unlikely to significantly stimulate construction activity in the short term.
APAC
In Q3 2024, the APAC region experienced a decrease in Titanium Tetrachloride prices, with Japan witnessing the most significant changes. The market was influenced by various factors such as sluggish demand, oversupply, and rising freight costs. These conditions led to a negative trend in prices, with Japan being particularly impacted. The quarter saw a -2% change from the previous quarter, reflecting the challenging market environment. Seasonal factors, along with disruptions like plant shutdowns, further contributed to the downward pressure on prices. Despite stable demand from downstream industries, the market remained bearish, with prices consistently declining. The quarter-ending price of USD 983/MT for Titanium Tetrachloride CFR Osaka in Japan highlighted the overall negative sentiment in the pricing environment. The correlation in price changes between the first and second half of the quarter, both at -2%, indicated a sustained downward trend in Titanium Tetrachloride prices throughout Q3 2024.
Europe
Throughout Q3 2024, the Titanium Tetrachloride market in Europe experienced a period of significant price increases. This uptrend was primarily influenced by a combination of factors such as robust demand from industries like electronics, coatings, and pigments, coupled with rising prices of upstream titanium ore i.e., Ilmenite. The market also saw a moderate level of supply, with manufacturers operating below full capacity due to subdued demand from downstream. Plant shutdowns were reported by some market participants, adding to the supply constraints. Despite facing challenges from reduced inquiries in the construction industry, France witnessed the most substantial price changes in the region. Overall, the quarter showcased a positive pricing environment with a steady increase in prices. The quarter saw an increase in Titanium Tetrachloride prices as compared to the previous quarter. Seasonal trends and correlations in price changes were observed, with a notable 3% price difference between the first and second half of the quarter. The quarter concluded with Titanium Tetrachloride priced at USD 2107/MT FOB Le Havre in France, reflecting a bullish sentiment in the market.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Titanium Tetrachloride market has continued to experience a bearish trend due to persistent weak demand from downstream sectors, particularly construction. The supply of Titanium Tetrachloride was sufficient to meet the demand from the downstream construction and automotive industries. As per the market participants, the manufacturing firms have not operated at their full capacities as the demand from the terminal industries has not rebounded.
The cost support from upstream Titanium Ore has been insufficient to boost Titanium Tetrachloride prices, leading to a challenging market environment. Additionally, demand from Western markets, including Europe and the US, has been sluggish, with the construction industry in these regions showing continued signs of weakness. This has prompted major exporters in China to reduce their prices to stimulate buying interest.
The resulting oversupply of Titanium Tetrachloride has exacerbated the situation, as producers struggle to sell their inventories at previous levels. To address the excess stock and encourage market activity, suppliers have been forced to lower prices. Overall, the second quarter of 2024 has been characterized by weak demand, oversupply, and declining prices for Titanium Tetrachloride, reflecting broader challenges in the industry amid uncertain economic conditions and fluctuating market dynamics.
APAC
In Q2 2024, Titanium Tetrachloride prices in the APAC region experienced a mixed price trend. The start of This quarter has been marked by several factors that have collectively driven prices lower. Key influences included tepid demand from the construction sector and an oversupply of finished goods due to improved manufacturing activity. The market also faced reduced support from upstream raw materials like Titanium Concentrate. However, the prices have improved in June amid rising freight costs and supply constraints. Elevated transportation expenses have forced suppliers to adjust their prices upward to cover these additional costs. Despite this price hike, demand from downstream industries, including the construction and automotive sectors, has remained average, with no significant surge in consumption. The steady demand has provided a stable market foundation, yet it has not been enough to offset the cost pressures caused by increased freight rates. Focusing on Japan, which observed the most significant price changes, the market saw a substantial decline. The seasonality effect, characterized by a typically lower demand during this period, played a notable role. Additionally, the correlation between increased manufacturing activity and subsequent oversupply exacerbated the price declines. Furthermore, disruptions in operations and plant shutdowns exacerbated the situation, creating a supply-demand imbalance. The quarter concluded with Titanium Tetrachloride prices at USD 1010/MT CFR Osaka in Japan, reinforcing the continuing downward trajectory.
Europe
Q2 2024 has been a challenging period for Titanium Tetrachloride in Europe, marked by a consistent decline in prices. Several significant factors contributed to this downward trend. The construction and automotive sectors, key consumers of Titanium Tetrachloride, have exhibited tepid demand. This lack of demand has been exacerbated by high interest rates and rising construction costs, discouraging investments in new projects. Additionally, the stabilization of inflationary pressures has not sufficiently revived manufacturing activities, leading to an oversupply of finished goods and thereby pushing prices lower. In France, where the maximum price fluctuations were observed, the market has seen a pronounced decrease. The French construction sector has been particularly sluggish, with reduced new orders and persistent economic challenges further dampening demand. This has resulted in a negative sentiment throughout the quarter, reflected in an approximately 3% decrease from the previous quarter in 2024. Seasonally, the typical upsurge in demand during the peak construction season did not materialize, reinforcing the bearish market sentiment. With no significant plant shutdowns reported, the disruptions in the supply chain were minimal, yet the market continued to struggle due to a persistent imbalance between supply and demand. The cumulative effect of these factors has led to a quarter-ending price of USD 2030/MT for Titanium Tetrachloride FOB Le Havre in France, underscoring a negative pricing environment for the product.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the US Titanium Tetrachloride market witnessed a series of developments that influenced its trajectory. Chinese suppliers, prominent in the Titanium Tetrachloride sector, initiated price increases for importing nations, setting a proactive tone for the period. In addition, operational reductions over the holiday season led to constrained finished stock availability, adding a layer of complexity. Geopolitical tensions between Israel and Hamas in the Middle East elevated crude oil prices, consequently inflating manufacturing costs for Titanium Tetrachloride.
Furthermore, Shipping disruptions in the Red Sea, coupled with traffic constraints in the Panama Canal and adverse weather conditions in the US, resulted in supply delays and escalated transportation costs. Despite these challenges, March witnessed a notable upsurge in new orders from the downstream Paints and Coatings industries, fortifying market fundamentals and propelling Titanium Tetrachloride prices to elevated levels, showcasing the industry's resilience amidst adversity.
In March, the rise in Titanium Ore prices, a crucial raw material, has led to higher manufacturing costs for Titanium Tetrachloride. Additionally, there has been an increase in inquiries from the Paints and Coatings sector, strengthening demand for the product in the US market.
APAC
In China, the prices of Titanium Tetrachloride have demonstrated a bullish trend in the first quarter of 2024. As per the market participants, there has been limited availability of Titanium Tetrachloride to meet the demand from the downstream industries. The majority of the manufacturing firms have undergone shutdown ahead of the Spring Festival Holidays in February. In addition, the availability of Titanium concentrate was also limited as mining activities have been downsized at the start of the new year. With the decrease in raw ore supply and the shutdown of large factories, Titanium ore spot prices tightened, leading to low inventories. Furthermore, in February, During the Spring Festival, most domestic manufacturers have continued their usual production. While the internal circulation of domestic trade paused temporarily, foreign trade has remained active. This has not alleviated the domestic spot tension as much as expected, and the market remains relatively tight, leading to higher prices for Titanium Tetrachloride. After the Spring Festival Holidays, demand for Titanium Tetrachloride surged as manufacturers restocked inventories, leading to a backlog of orders and price increases. Rising crude oil prices also contributed to higher manufacturing costs and Titanium Tetrachloride prices. Consequently, Titanium Tetrachloride Ex-Tianjin prices were settled at USD 1005 per ton in March.
Europe
In the first quarter of 2024, the prices of Titanium Tetrachloride have demonstrated a mixed trend in the European market. As per the market participants, the decline in production in the previous quarters continued into January, causing a decrease in both production and stocks for this month. Additionally, higher upstream Titanium Ore has further supported the upshift observed in the price realizations of Titanium tetrachloride. Furthermore, Market players report that new inquiries from the downstream construction sector have been average. France's construction sector worsened at the start of 2024, with the sharpest contraction in total activity in three years. In France, the Titanium Tetrachloride market has experienced an upward trend in prices during February. This increase is attributed to limited mining activities in the European region, which have raised concerns about the supply of upstream Titanium Ore, thereby leading to higher prices for this material. Furthermore, Titanium Tetrachloride prices have dropped in the domestic market of France towards the end of Q1 2024. The reduction in inquiries from the downstream construction sector has been responsible for the downshift observed in the price realizations of Titanium Tetrachloride. According to a recent survey conducted by the European Commission, inadequate demand in both the residential and commercial sectors has constrained new construction activity in Europe, slowing down the demand for Titanium Tetrachloride. The ChemAnalyst database has shown that the prices of Titanium Tetrachloride FOB Le Havre prices were settled at USD 2118 per ton in Q1-end.
For the Quarter Ending December 2023
North America
In the US market, Titanium Tetrachloride prices exhibited a volatile pattern in the fourth quarter of 2023. There was a slight improvement in inquiries from the downstream Paints and Coatings industries during the initial half of Q4, leading to optimistic market sentiments. Additionally, the market faced supply-side challenges due to limited finished goods availability and manufacturers operating at reduced capacities.
On a positive note, Titanium Tetrachloride prices were supported by increased construction activities and a robust US economy. Towards the end of Q4, the prices of energy resources like crude oil decreased, thereby lowering the manufacturing costs of Titanium Tetrachloride. However, the decline in demand from the downstream Automotive sector had an impact on market dynamics.
In December, The destocking season, characterized by inventory reduction by manufacturers and distributors, also affected Titanium Tetrachloride prices. Furthermore, the global decrease in demand prompted Chinese manufacturers, who play a significant role in the Titanium Tetrachloride market, to reduce their prices to maintain competitiveness and stimulate demand.
APAC
In the fourth quarter of 2023 (Q4), the Titanium Tetrachloride market in the APAC region experienced various factors that influenced prices and market dynamics. Firstly, the demand from downstream industries, such as paints and coatings, construction, and automotive, remained moderate to low, impacting the overall market sentiments. The slowdown in global trade volumes and excess container supply also put pressure on the market, leading to lower freight rates and smooth movement of finished goods. Additionally, the availability of Titanium Tetrachloride remained sufficient due to manufacturers operating at reduced capacities and implementing scheduled maintenance to manage inventory levels. In Japan, one of the major players in the Titanium Tetrachloride market, the prices of Titanium Tetrachloride showed a downward trend. The drop in inquiries from the downstream paints and coatings industries prompted manufacturers to reduce prices. Furthermore, the decline in crude oil prices eased manufacturing costs, while the weak global demand led to a decrease in Japan's final energy consumption. Looking at the price trends for Titanium Tetrachloride in Japan during the current quarter, there was a decrease of 2.4% in November, followed by a further decline of 2.8% in December. This reflects the bearish market sentiment and the impact of factors such as low demand, low availability of finished goods, and a decrease in crude oil prices. The latest price of Titanium Tetrachloride CFR Osaka in Japan for the current quarter is USD 990/MT.
Europe
The fourth quarter of 2023 was challenging for the Titanium Tetrachloride market in Europe. The market experienced a bearish trend, with prices declining throughout the quarter. The main factors that influenced the market were weak demand from the downstream construction and automotive industries and low manufacturing costs. Additionally, the geopolitical tensions in the region and the slowdown in global trade activities affected the market sentiment. France, in particular, saw a significant impact on Titanium Tetrachloride prices. The country experienced a decrease in inquiries from the downstream Paints and Coating sector, leading to price adjustments by manufacturers. Additionally, the industry has experienced the destocking season, during which businesses reduce their inventory levels, further contributing to the reduced demand for Titanium Tetrachloride. Furthermore, the typical decrease in construction activity during the winter months, combined with the year-end holidays, has resulted in a gradual slowdown in the market. In response, the manufacturers have adjusted their production levels to align with the subdued market demand and address the oversupply issue to stabilize prices and restore market balance. Overall, the price of Titanium Tetrachloride in France for the fourth quarter of 2023 was USD 1990/MT FOB Le Havre.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, the prices of Titanium Tetrachloride have exhibited a volatile market trend In the US market. In early Q3, the prices of Titanium Tetrachloride declined amid bearish demand from the downstream Construction sector. As per the market participants, The downstream manufacturing firms have replenished their inventories, resulting in a majority of transactions consisting of small orders. The impact of inflation on costs and the shrink in fixed cost yield directly triggered a significant decline in the profit margin of the Titanium Tetrachloride business. Furthermore, towards the second half of the third quarter of 2023, The increase in offers from China has led to a rise in the price realizations of Titanium Tetrachloride. Moreover, according to market sources, Dow Chemical, Longbai, and other chemical companies have officially announced price hikes, encompassing various industry chains, including Titanium Tetrachloride. In September, the prices of Titanium Tetrachloride sustained their upward momentum in the domestic market of the USA. The active demand from the downstream construction sector has boosted market sentiments and prompted the downstream manufacturers to raise the procurement of Titanium Tetrachloride.
APAC
Throughout the third quarter of 2023, the prices of Titanium Tetrachloride have remained volatile in the domestic market of China. In early Q3, Titanium Tetrachloride prices experienced a decrease due to the moderate consumption levels within the downstream construction sector. Moreover, the slowdown in global purchases, influenced by inflationary pressures and stringent monetary policies, has additionally impeded the expansion of the Titanium Tetrachloride market. As a result, the combined effect of weak demand downstream and insufficient cost support from raw materials has compelled manufacturers to modify their prices. According to the data released by the General Administration of Customs, China's overall exports, which include Titanium Tetrachloride, contracted by 14.5 percent in July on a year-on-year basis. Furthermore, in mid-Q3, the price of Titanium Tetrachloride has progressed in an upward trajectory. The slowdown in mining activities in the past two quarters has led to limited availability of upstream Titanium Concentrate. As per the market players, the demand from the downstream Paints and Coatings sector has also escalated and reinforced the market fundamentals of Titanium Tetrachloride among the manufacturers. Consequently, Titanium Tetrachloride Ex-Tianjin prices were settled at USD 1020 per ton in Q3-end.
Europe
In France, the prices of Titanium Tetrachloride have remained on the lower end throughout the third quarter of 2023. The inquiries from the downstream Paints and Coatings sector were inadequate as a result, the manufacturers have maintained the prices at low levels. This shift in the demand-supply equilibrium has created a situation of oversupply in the market. As per the market sources, manufacturers have contended with high interest rates in the wake of inflationary pressures, which have led them to downsize their production volumes as well. As a result, manufacturing activity throughout the eurozone experienced its most significant contraction since the global outbreak of the COVID-19 pandemic. Furthermore, towards the second half of the third quarter, the ample supply of finished stocks and lower TTF natural gas prices have added to the drop in Titanium Tetrachloride prices. In addition, The European construction market has remained lackluster despite the completion of the holiday season in August, keeping the market sentiments bearish. The ChemAnalyst database has shown that Titanium Tetrachloride FOB Le Havre prices were concluded at USD 2110 per ton in September.
For the Quarter Ending June 2023
North America
The prices of Titanium Tetrachloride in the US markets have witnessed volatile market sentiments. The construction market has been in dire straits, constraining the market fundamentals of key inputs, including Titanium Tetrachloride. The availability of finished stocks has also been sufficient as the demand from downstream construction and automotive industries has remained under pressure. In mid-June, Natural Gas prices soared as inventories rose only +84 Bcf, well below expectations of +94 Bcf. However, the prices were still on the lower end due to adequate inventory levels and a weak demand outlook in the major exporting country, China. Furthermore, towards late Q2, the downstream production facilities have been operated at reduced rates as there was already ample availability of finished goods. The manufacturers have been cautious about the high inventory levels, as tepid economic conditions across the Western market have not subsided. Weak manufacturing across the nation has led to a contraction in the Purchasing Manager Index, as it fell to 46.0 in June, from 46.9 in May. The container availability at US Ports has also been sufficient, and the movement of finished goods has been unimpeded.
APAC
The price realizations of Titanium Tetrachloride in China have sustained a downward trajectory throughout the second quarter of 2023 due to the decline in procurement from the downstream construction and automotive industries. Additionally, inquiries from the Western market have remained subdued, influenced by high inflationary pressure and volatile energy costs. Market participants report that despite increased production following the lifting of COVID restrictions, demand from the downstream construction industry hasn't reciprocated on a broader level. Consequently, manufacturers have had to revise their quotations to swiftly release existing inventories, given the elevated stocks. Furthermore, both the United States and Europe have faced diminished demand due to increasing interest rates and inflation. As a result, weak demand from Western markets has tempered the market momentum, leading to a decline of 7.5% in exports from China in May on a year-on-year basis. Data from the National Bureau of Statistics has shown that, with the reduction in production levels, the manufacturing purchasing manager index has settled in the contraction zone (below 50 points) throughout Q2. Consequently, Titanium Tetrachloride Ex-Tianjin prices were assessed at USD 995 per ton in June.
Europe
In the domestic market of France, the prices of Titanium Tetrachloride have shown mixed sentiments. European market participants initially reduced production in response to an energy price spike in early Q1, resulting in limited availability of Titanium Tetrachloride stocks. However, in early Q2, manufacturing firms increased their workforce to meet rising production levels. The supply side has been stable, with freight charges remaining low, and the supply chain functioning normally. Despite these efforts, inquiries from the downstream Construction and automotive industries did not see significant improvement in the latter part of Q2. As a result, manufacturers have reduced their prices. The fall in TTF natural gas prices to a record low of Euro 31.23/Mw-hr contributed to reduced manufacturing costs for various Specialty chemicals, including Titanium Tetrachloride. However, despite lower energy prices, there has been an increase in inflationary pressures, which has posed risks to the price realizations of Titanium Tetrachloride for manufacturers. Notably, even with a drop in TTF Natural gas prices, inflation rose to 6.1 percent in May, up from 5.2 percent in April. Thus, throughout the second quarter of 2023, the construction sector has remained lackluster, responsible for the contraction observed in the demand dynamics of Titanium Tetrachloride.
For the Quarter Ending March 2023
North America
Throughout the first quarter of 2023, the prices of Titanium Tetrachloride have demonstrated mixed market sentiments. The average procurement from the downstream construction industries has reduced the market value of Titanium Tetrachloride, and as a result, the prices have remained on the lower end. Rising interest rates, tight monetary conditions, and volatility in input energy material prices have pressured the trade activities of various specialty chemicals, including Titanium Tetrachloride. As per the market participants, the downstream paints and coatings sector inquiries were based on a need-on-demand basis, increasing the supply-side pressure on the existing high inventories. Furthermore, the financial sector worries brought on by the failure of two banks based in the USA have further fumed the market downturn across the domestic region. Thus, the Titanium Tetrachloride market has operated at low levels at Q1-end.
APAC
The prices of Titanium Tetrachloride have demonstrated a downward trajectory throughout the first quarter of 2023. The exemption of COVID-19 restriction has fuelled manufacturing activities in the domestic region. The stockpiling of the product amid subdued demand from the downstream paints and coatings sector has weakened the market sentiments, and as a result, the market has operated at low levels. Furthermore, the Spring Festival Holidays in the first half have tightened the labor conditions and transportation and logistics across the nation. However, in February, the production activities speeded up, and the manufacturing purchasing manager index settled in the expansion zone. The demand from the downstream construction sector did not reciprocate, and the manufacturers have had to reduce their quotations in order to stimulate new shipments. In addition, the freight charges were also at the lower end amid decreased demand from the overseas market. Consequently, Titanium Tetrachloride Ex-Tianjin prices were settled at USD 1124 per ton at the end of the first quarter.
Europe
In the domestic region of France, the prices of Titanium Tetrachloride have witnessed a volatile trend. The prices have remained at the higher end in the European market amidst continued inflationary pressures and still-high manufacturing costs. The build-up of high-cost inventories has impeded the manufacturers from any price cuts despite the weak demand fundamentals. In addition, the labor strikes for wage issues has been continued throughout the first half and impacted electricity production across the nation. Furthermore, with the tight monetary conditions and high-interest rates, the inflationary pressures have started to ease, alleviating the market pressure. On the demand side, the inquiries from the downstream construction sector have also moved, albeit at a slower pace. In late Q1, declining freight charges and the ease in production costs brought on by lower energy prices led to a decrement in the market value of Titanium Tetrachloride. Thus, Titanium Tetrachloride FOB Le Havre prices were assessed at USD 2281 per ton in March.
