asia

Asia TiO2 December outlook bearish as Chinese demand shrivels up


SINGAPORE (ICIS)–Asia’s titanium dioxide
(TiO2) market outlook in December remains
bearish, with demand in China expected to taper
down in the weeks ahead.

Conditions in downstream markets remain dismal
amid the protracted US-China trade war and
lingering macroeconomic concerns. Consequently,
demand for TiO2 pigments in China has also
suffered.

Even with the news that China and the US have
agreed to a
phased roll-back
of tariffs, many market
players deem it premature to assume that the
trade dispute could be imminently resolved.

Moreover, demand for TiO2 in China is
seasonally slower during the winter months.

Towards the end of the year, domestic demand
for downstream paint and coating applications
typically tapers down in the northern regions
of the country, which usually experience harsh
winters.

Chinese suppliers are also bracing for slower
export demand from Europe and in temperate
regions.

However, some suppliers were optimistic of
steady demand from some other regions.

“The southern parts of China see much milder
winters, so demand from the paints sector from
this region, as well as from southeast Asia,
won’t be as greatly impacted,” a Chinese
producer noted.

Meanwhile, supply is likely to remain ample
relative to demand.

Some suppliers have commenced destocking
activities and were willing to negotiate prices
to close deals and boost cargo uptake before
the end of the year.

Others who were not facing any significant
inventory pressures sought to maintain offers
in order to safeguard margins.

TiO2 Chinese spot export prices were last
assessed at $2,000-2,150/tonne CFR (cost &
freight) Asia on 22 November, according to ICIS
data.

Focus article by Leanne Tan

Photo: Cans of paint. TiO2 is used as a
white powder pigment in products such as
paints, coatings, plastics, paper, inks,
fibres, food and cosmetics. (Source:
imageBROKER/Shutterstock)


Click here
 to view
related stories and content on the US-China
trade war topic page



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more