Recently, due to the recent rise in China's spot export prices, Asian titanium dioxide (TiO2) contract price negotiations may rise in the second quarter. Although the current price negotiation is still in its early stages, some contract buyers have received higher quotations from producers, and the quotations have increased by $100-150/ton from the first quarter.
Due to exchange rate-related fluctuations, the spot price of Chinese titanium dioxide exports has recently increased. According to ICIS data, the spot price of titanium dioxide exported by China on March 15 was 2250~2400 US dollars/ton (FOB, China), which has increased by about 3.3% since the beginning of February.
Earlier this year, Chinese titanium dioxide traders and distributors kept low inventories to reduce losses. A Chinese titanium dioxide producer said: “International suppliers will seek to raise their second-quarter quotations to maintain a premium on Chinese exports.” Some Asian buyers are cautious and hope to end the discussion of contract prices in the second quarter as soon as possible. China's spot prices will rise further. The goal of these buyers is to finalize the second quarter contract price in early April.
In Southeast Asia, demand in the paint and coatings industry began to increase in the past two months. However, the general elections to be held in Thailand on March 24 and Indonesia on April 17 may delay the expected increase in demand. In India, seasonal demand recovery may have to wait until July. As a result, buyer resistance has increased significantly compared to other Asian markets. A titanium dioxide buyer in the paint and coatings industry in India said: “June is usually the beginning of the rainy season in India, and its downstream demand will be quite low.”