Texas, USA: The prices of Titanium Dioxide have been demonstrating a contrasting trend across regional markets. With the rise in new sales volumes coupled with an increase in manufacturing costs, the Titanium Dioxide price trend has been progressing northwards in Asian markets. On the other hand, downstream demand from the construction sector has taken a toll on the demand dynamics of Titanium Dioxide in European markets.
According to market sources, one of the leading manufacturers of Titanium Dioxide, Tronox Holding, has released its financial results for the first quarter of 2024.Tronox’s first-quarter performance exceeded expectations, driven by lower production costs, the completion of destocking in the supply chain, and higher Titanium Dioxide demand levels, especially in comparison to typical seasonal patterns. Revenue rose by 13% from the previous quarter, with a 20% increase in revenue from Titanium Dioxide and zircon alone, excluding other product sales which declined due to non-repeating sales. Titanium Dioxide volumes surged by 18% from the fourth quarter, surpassing typical seasonal growth rates. Demand growth was strong across all regions, particularly in Europe, the Middle East, Africa, and Latin America,which had seen significant volume declines over the past six quarters.
Last year, Tronox faced significant costs due to low asset utilization rates, reflected weak demand. However, as the market began to recover towards the end of the year, the company started increasing its operating rates. This resulted in improved manufacturing costs in the first quarter compared to both the prior year and the prior quarter. As Tronox continues to address high-cost inventory in its supply chain through cost-reduction investments, it expects margins to return to pre-downturn levels. The first quarter represented a turning point, and Tronox anticipates that both market trends and cost reduction efforts will continue to be positive going
forward. The company is making progress towards significantly enhancing its earnings power, with much of the high-cost inventory already managed on its balance sheet.
According to the pricing intelligence of ChemAnalyst, the prices of Titanium Dioxide are likely to remain on the higher end in the second quarter of 2024. The peak season of construction activities in the Asian market is likely to drive the market growth of Titanium Dioxide. In addition, Tronox anticipates a 7-10% increase in Titanium Dioxide volumes compared to Q1 2024. As production costs continue to decline from their peak in 2023, the company expects further improvements in absorption and the reduction of non-repeating charges in the second quarter, which will likely strengthen the market fundamentals of Titanium Dioxide across regional markets.
