Titanium dioxide prices, markets & analysis

--MARKET OVERVIEW (Updated to Q1 2019)

Asia titanium dioxide (TiO2)

The gap between Chinese export spot prices and quarterly contract prices of other international TiO2 producers remains persistently wide, propagating concerns that international contract prices had room to fall further in the first quarter. Chinese export volumes are likely to remain readily available relative to demand.

Chinese domestic demand is likely to remain tepid, as the seasonal lull for pigments from the downstream paints and coatings sector in winter continues. While the US and China have currently agreed to halt additional tariffs, market players remain wary of how trade negotiations between the two will proceed.

European titanium dioxide (TiO2)

European titanium dioxide (TiO2) supply is likely to remain ample during the first quarter of 2019, provided that there are no unplanned issues. This is as demand from the main end sectors typically remains in low season during the winter and if imports in Europe remain available. The supply situation is likely to remain relaxed, if buying activity remains muted. There is, however, some talk of possible production adjustments in certain cases which could mitigate any market length, but this has not been officially confirmed.

European titanium dioxide (TiO2) demand is likely to remain muted during the first quarter of 2019 for seasonal reasons. The main downstream paints and plastics sectors is typically in low season during the winter. Buying activity could also continue to be stifled if market sentiment remains bearish and taking into account economic and political uncertainty.

North America titanium dioxide (TiO2)

The North America titanium dioxide (TiO2) market will remain essentially under-supplied during the first quarter of 2019 in the absence of any planned additional domestic capacity. Although supply stress eased as demand weakened seasonally during the previous quarter, supply strain may return ahead of the US spring paint and coatings season.

While some pent-up domestic TiO2 demand from downstream architectural coatings is likely from hurricanes and California wildfire damage in 2018, at least a marginally stronger 2019 paint and coatings season is anticipated. Forecasts of a broadly milder winter this year, however, may further strengthen demand for TiO2 pigment.