Titanium Dioxide (TiO2) Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Titanium Dioxide in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Titanium Dioxide Price Trend for the First Half of 2023

Asia

The Asian market was favorable to the rising price trend of titanium dioxide in the first quarters of 2023. The prices inclined gradually with some slight fluctuations. The positive outlook of the market was a direct effect of removing covid restrictions, upscaling industrial production, and high speed of market recovery.

However, the market could not sustain these high prices and strived for equilibrium, causing the prices to fall. Further, after the complete removal of restrictions, the factories churned out products at a much faster pace than the market offtakes. Hence, the manufacturers reduced their quotations to maintain positive product movement in the market. The spot prices of titanium dioxide averaged around 2264 USD/MT in June’23 in the Chinese market.

Europe

The titanium dioxide market fluctuated in the first two quarters of 2023. These pricing patterns resulted from poor demand and reduced intakes from the downstream industries. Amid the slow demand, the manufacturers were forced to reduce their outputs. With rising inflation rates, production cuts gradually increased. Given the economic downturn, the labor strikes further affected the market dynamics, thereby exerting pressure on the pricing fundamentals.

North America

The price trends for titanium dioxide kept on the lower side of the scale during the first half of 2023. As the paint and coatings industries reduced their offtakes,  the abundant supply of the product in the market led to a fall in prices. The prices also suffered from falling energy costs and declining freight charges. Further, the rising speculations of a global recession caused manufacturers to participate actively in destocking.

Analyst Insight

According to Procurement Resource, the price of Titanium dioxide is estimated to depict a declining trend in the upcoming quarter. The price trend will be mostly affected by the weakened demand from the paint and coatings industries and the rise in global inflation.

Titanium Dioxide Price Trend for the Second Half of 2022

Asia

A steep decline in the prices of titanium dioxide was observed in the second half of 2022 as the erratic energy costs along with rising covid cases affected the market negatively. In addition to this, the decreased offtakes from paints and coating industries, weak economic growth, and strict restrictions imposed to deal with the resurgence of covid cases further aided the declining trajectory of titanium butoxide prices.

Europe

The European region struggled with the rising inflation that caused energy prices to rise leading to higher production costs thereby, negatively impacting the prices of titanium dioxide. The transportation routes were further disrupted along with the uncertainties in the construction and automotive industries. In addition to this, the offtakes and purchasing behaviour of the end-user consumers also declined, fueling the declining price trends for titanium dioxide.

North America

The paints and coatings industry reduced their offtakes which coupled with the drop in the crude oil prices and availability of cheaper imports from the Asian market led to the fall in titanium dioxide prices. The demand decreased significantly in the fourth quarter along with the slow manufacturing due to high inflation rates keeping the price trend of the commodity in the negative zone.

Analyst Insight

According to Procurement Resource, the prices of titanium dioxide are expected to showcase mixed sentiments. With trade and supply-chain normalization, the automotive and construction sectors are estimated to improve their global performance, thus affecting the prices positively.

For the Second Quarter of 2022

Asia

Titanium dioxide prices varied across the Asia-Pacific region in this quarter. The supply disruption caused by Russia's invasion of Ukraine made the supply of the feedstock titanium concentrate even more problematic, and in the first half of the second quarter, a bullish market outlook prevailed. The decline in TiO2 market values in India has also been backed by a decline in demand from downstream industries like automotive and construction.

North America

The second quarter of 2022 saw mixed market sentiments for titanium dioxide prices. Due to demands, constrained supply and ineffective production capacity brought on by the stretched supply chain, labour shortage, and high energy prices, the production of the chemical increased in Q2 of 2022. Moreover, the US Federal Reserve's tight monetary policy and high interest rates worsened the domestic trade picture, which at quarter's conclusion supported titanium dioxide's unfavourable market views.

Europe

Titanium Dioxide prices in Germany increased by about 4% in the second quarter compared to what was seen in Q1 from historical price trend. Due to the restrictions on Russian energy imports brought on by the sanctions imposed by European countries, domestic production of TiO2 saw its costs surge even further. Additionally, the commodity's price was highlighted and its market expansion was supported by the upstream construction and automation sectors' buoyant demand.

Analyst Insight

According to Procurement Resource, the second half of the year would be passive for the price trends of Titanium Dioxide. The major entities weighing on the prices are expected to be over-supply and matured inventories, sluggish demand from the downstream paints and varnishes, and enfeebled costs of upstream processes.

For the First Quarter of 2022

Asia

In January 2022, the average price of domestic titanium dioxide in local Chinese marketplaces was 20,735 RMB/MT. Traders were more careful in purchasing goods and downstream industries purchased things on demand. As a result, the overall market demand for titanium dioxide was general.

In terms of titanium concentrate, the market in the Panxi region was quite stable in the first few weeks of the month. The overall state of the titanium ore market was satisfactory, and the price remained stable. The price of 38-grade titanium ore without tax was approximately 1,500-1,530 RMB/MT as of the 13th of January, while it was 2,220-2,260 RMB/MT for 46-grade titanium ore and 2,500-2,550 RMB/MT for 47-grade titanium ore.

For the Fourth Quarter of 2021

Asia

The compound in the Asia Pacific market experienced a mixed trend throughout the fourth quarter of 2021. These market attitudes were mostly related to lower operational loads at Chinese domestic manufacturing plants.

However, the run rates improved after the Chinese government's consistent efforts to reduce electricity rationing in China. The demand forecast remained positive during the quarter, with inquiries coming in from both the local and international markets. As a result of the supply-demand mismatch, the FOB Wuhu debate for TiO2 rutile grade was decided at 3097 USD/MT at the end of the quarter.

Europe

Throughout the fourth quarter of 2021, the European market had consistent optimistic sentiment. Despite the overwhelming inventories at lower levels during the fourth quarter of 2021, the demand prognosis in the domestic market revealed varied opinions. Imports from the Asia Pacific region, on the other hand, remained disruptive due to limited accessibility of vessel freights and a decrease in the PMI index for titanium dioxide in China despite the application of severe environmental protection measures.

In the European domestic market, however, the cost support from increasing freight charges kept the valuation of imported volumes high, and the average CFR NWE discussions were assessed at USD 3800 per tonne in the fourth quarter of 2021.

North America

Despite a bullish trend ruling the market for the bulk of the period, the North American market had mixed sentiments in the fourth quarter of 2021. This was mostly due to the adequate pushback from the supply-demand imbalance, which was further compounded by rising natural gas prices, which had taken a proper toll on the future production of numerous minerals, including titanium dioxide. An increase in COVID instances had prompted concerns in ore feedstock. As a result, during the fourth quarter of 2021, the FD UGSC (USA) quarterly average negotiations for the chemical CP Rutile Grade were finalised at USD 4434 per tonne.

For First, Second and Third Quarters of 2021

Asia

Titanium dioxide prices in the Asian market skyrocketed due to high demand and limited stock availability. Prices in the Chinese market surged significantly, reaching 2875 USD /MT at the end of March, well above the USD 2015/MT level in January 2021.

Some dealers quoted prices that were significantly higher than expected, sending the domestic market to an almost three-year high. Meanwhile, a similar scenario was observed in the Indian market, where titanium dioxide prices (rutile grade) for rose by 8% from January to March. The increase was attributed to strong demand from the domestic paints and coatings sector as well as premium cargo from China.

Titanium dioxide prices in India reached 3424 USD /MT and 3001 USD /MT for Rutile and Anatase grades during the last week of June.

Prices increased somewhat in the Asian market during the third quarter of 2021. After a steady recovery since mid-June, its price in India fell slightly in August, pushed down by lower import prices. Titanium dioxide prices continued to rise in the Chinese domestic market, with FOB Wuhu talks for Rutile grade TiO2 settling at 3125 USD/MT for the week ending September 24th.

Europe

Titanium dioxide prices climbed significantly in the European region during Q2 2021, owing to strong demand from the downstream sector. Major global suppliers indicated that they have seen a surge in its demand for primarily from Europe and Asia, despite a global supply constraint. Furthermore, a global player raised titanium dioxide costs in Europe by 200 USD /MT this quarter, effective Q3 2021.

Price increases of 139-174 USD /MT were seen in Q3 by western suppliers in a tight and buoyant market that faced multiple persistent pulls on supply, including an ongoing lack of Chinese export competitiveness. Furthermore, container constraints hampered its delivery to the rest of the world.

North America

Titanium dioxide prices (anatase grade) increased steadily across the United States, rising 2.27% from January 2021 to March 2021, and were settled at 3150 USD /MT by the conclusion of the quarter.

In the meantime, some big manufacturers boosted their product pricing to better their margins, such as Venator, which increased its titanium dioxide prices by roughly 160 USD /MT for the third quarter of 2021 in the North America region. Overall, prices for Anatase grade in the United States hovered about 3485 USD /MT through the end of June.

For the Year 2020

Asia

Coronavirus-related shutdowns in the first half of the quarter prompted forcible measures at several small-scale ilmenite factories in China and India, subsequently exacerbating the Titanium supply problem. The chemical's tight supply condition was extended until the end of the quarter, as few participants were heard holding cargoes in expectation of an exceptional surge in its seasonal demand.

In India, purchasers took a wait-and-see strategy because of the concerns about an unpredictable demand pattern following the second wave of the pandemic around the end of September. Whereas in China, producers were heard operating at optimal rates even though export orders were low in July.

The prices in India settled at 2888 USD/MT in September, indicating a decrease. Throughout the quarter, demand in India varied in a limited range, particularly in the latter half of September as a result of the second round of lockdown in numerous sections of the nation.

Europe

Demand in the European region has been significantly boosted by higher offtakes in the furniture, building, and industrial sectors compared to Q2, after a boost in containment measures. DIY activities increased significantly as people engaged in more home renovation and building tasks during the extended period of lockdown. With the restart of Chinese shipments in the latter half of Q2 2020, supply has also remained plentiful.

North America

The supply in North America remained adequate, as companies were seen constantly altering their production rates in response to the volatility in the demand pattern. In the final week of September, news of Chemours' forthcoming titanium dioxide factory in Georgia valued USD 86 million alleviated fears about supply strain.

By September, demand in the construction sector had significantly increased; however, resurgent cases of virus hindered the anticipated recovery in demand. However, due to a severe fall in market fundamentals in some end-use areas, its prices had significantly faded by quarter-end. Delays in a number of commercial projects, followed by a poor recovery in the downstream automotive market, were identified as primary causes of the protracted recovery curve.

Procurement Resource provides latest prices of Titanium Dioxide. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.