For the Quarter Ending December 2024
North America
The North American Titanium Tetrachloride market experienced a bearish trend throughout Q4 2024, mirroring weakness in the construction sector.
In October, Titanium Tetrachloride market saw weak demand from the construction sector, indicated by decreased cement sales due to rainfall and a general economic slowdown. This translated to lower Titanium Tetrachloride prices. While November saw a slight improvement in demand for Titanium Tetrachloride due to government infrastructure projects, the overall trend in the cement industry remained sluggish, due to continued downward pressure on Titanium Tetrachloride prices.
December's data reinforced this bearish trend. The ongoing weakness in the cement industry, coupled with a significant slowdown in the residential real estate market (high mortgage rates, reduced housing starts, and slow construction spending), indicated sustained subdued demand for construction materials. The seasonal slowdown further contributed to the decline.
In nutshell, weak demand from the construction materials market indicated a downward trajectory for Titanium Tetrachloride prices throughout Q4 2024. The overall market performance reflected the significant impact of weak construction sector activity on the demand for construction-related chemicals like Titanium Tetrachloride.
APAC
The APAC Titanium Tetrachloride market, particularly in China, experienced a consistent price decline throughout Q4 2024. This bearish trend was multifaceted, stemming from several key factors.
Firstly, falling titanium dioxide prices, a key raw material, directly reduced production costs and exerted downward pressure on Titanium Tetrachloride prices. This was further compounded by weak demand from the paints and coatings sector, significantly impacted by a sluggish construction market in China. Reduced consumer confidence and post-festive season slowdown further dampened demand.
Secondly, China's Titanium Tetrachloride market faced substantial supply-side challenges. Export restrictions created domestic overcapacity, leading to price reductions to near-cost levels and widespread production cuts. Although China holds long-term competitive advantages (cost and technology), anti-dumping measures and high tariffs in other markets hampered export opportunities, worsening the oversupply situation.
Despite mixed signals in the construction sector—showing both strength in certain segments and persistent weakness in others—the overall effect in Q4 2024 was insufficient to counteract the negative forces. The result was a clear downward price trend throughout the quarter, with the short-term outlook remaining bearish.
Europe
The European Titanium Tetrachloride market experienced a volatile Q4 2024, shifting from a bullish to a bearish trend. October saw price increases driven by strong demand from the paints and coatings sector and a projected shortfall in titanium dioxide supply. High energy costs and anti-dumping measures further contributed to this upward pressure.
However, this bullish trend reversed sharply in November and December. Weak demand from the paints and coatings sector, linked to a sluggish European construction and automotive sector, became the dominant factor. Ample inventories and the traditional off-season further exacerbated the situation. Although anti-dumping duties were imposed on Chinese imports, their effect was limited as European manufacturers had already adjusted their sourcing strategies.
The result was a significant downward price pressure in the final two months of the quarter, outweighing the initial price increase in October. This demonstrated the market's sensitivity to both supply-side factors (titanium dioxide availability) and demand-side pressures (weakness in downstream sectors).
The overall quarterly trend reflected a net decline in prices despite the initial bullish start. The limited effectiveness of the anti-dumping measures highlighted the preemptive actions taken by European manufacturers in response to anticipated supply-chain disruptions.
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.
