Limited Pre-Holiday Restocking Keeps Titanium Dioxide Stable in the Short Term [SMM Titanium Weekly Review]

Titanium Concentrate

This week, domestic titanium concentrate (TiO2≥46%) was quoted at 1,150-1,200 yuan/mt, averaging 1,175 yuan/mt, while the TiO2≥47% grade was quoted at 1,250-1,300 yuan/mt, averaging 1,275 yuan/mt. Mozambique-origin TiO₂≥46% titanium concentrate was quoted at 1,180-1,300 yuan/mt, averaging 1,240 yuan/mt; Nigeria-origin TiO₂≥50% titanium concentrate was quoted at 1,350-1,450 yuan/mt, averaging 1,400 yuan/mt; Australia-origin TiO₂≥50% titanium concentrate was quoted at 1,400-1,450 yuan/mt, averaging 1,425 yuan/mt. The titanium concentrate market consolidated on a weak note this week.

Titanium concentrate prices remained under downward pressure this week. Ore supply is currently very ample. On one hand, new domestic capacity continues to be released, boosting domestic ore output; on the other, August titanium concentrate imports hit a record high, with a large influx of external cargoes and low-priced ore constantly emerging, putting obvious shipment pressure on miners. Downstream titanium dioxide has seen some recovery, but this has not fed through to the raw material side. Titanium dioxide plants remain conservative in procurement, insisting on pushing for lower prices, showing little willingness to restock proactively, and no large-scale raw material restocking has occurred. Cautious downstream purchasing can hardly absorb the current ample ore supply, making the oversupply pattern difficult to reverse, and titanium concentrate prices are unlikely to shake off pressure in the short term.

Titanium Dioxide

This week, anatase titanium dioxide quotes closed at 12,000-13,000 yuan/mt, averaging 12,500 yuan/mt; rutile titanium dioxide quotes closed at 12,500-14,800 yuan/mt, averaging 13,650 yuan/mt; chloride-process titanium dioxide prices closed at 15,300-16,800 yuan/mt. Prices for all titanium dioxide types were flat WoW.

The titanium dioxide market was broadly stable this week. Cost side, titanium concentrate and sulphuric acid markets were in the doldrums, so raw materials provided no strong cost support, and any upward momentum relied more on supply-demand dynamics and market sentiment. Supply side, driven by peak-season expectations, some titanium dioxide producers resumed production and raised output, actively taking orders. Previously circulating low-priced cargoes largely narrowed, and bearish sentiment visibly dissipated. As orders landed, some producers worked down inventory and shifted to scheduling deliveries. However, demand-side improvement remained limited. Pre-holiday stockpiling plus the September-October peak season brought some incremental orders, but with the two holidays approaching, downstream procurement pace slowed, and end-user buying stayed cautious. Market sentiment recovered, but actual transaction prices lacked follow-through strength, making it hard for prices to rise quickly. Overall, titanium dioxide is expected to remain largely stable and consolidating in the short term. Whether the market can strengthen further depends on actual downstream purchasing volumes after the holidays.

Titanium Slag

This week, acid-soluble titanium slag (Sichuan) was quoted at 3,600-3,800 yuan/mt; mainstream quotations for ordinary 90 titanium slag stood at 5,200-5,400 yuan/mt.

Titanium slag quotations were in a stalemate this week, extending a consolidating trend on a weak note. Although raw material prices fell somewhat, the losses caused by earlier high costs have not yet been reversed, and the industry remains loss-making. Producers lack motivation, overall operating rates stay low, and the pace of new capacity release has slowed. Demand side also lacks upward drivers, with downstream buying mainly just-in-time procurement, weak willingness to chase prices, and thin trading activity. In the short term, until the low operating rate and weak demand pattern improves materially, titanium slag prices are expected to continue consolidating on a weak note.

Titanium Sponge

This week, grade 0 titanium sponge was quoted at 44,000-45,000 yuan/mt, averaging 44,500 yuan/mt; grade 0 titanium sponge FOB averaged $6,800/mt; grade 1 titanium sponge was quoted at 43,000-44,000 yuan/mt, averaging 43,500 yuan/mt; grade 2 titanium sponge was quoted at 42,000-43,000 yuan/mt, averaging 42,500 yuan/mt.

The titanium sponge market was stable this week. Supply side, titanium sponge producers have maintained high operating rates for consecutive months, with overcapacity a prominent issue. Producers are running at full capacity to spread costs, and spot inventory keeps accumulating. Demand side, high-end orders from aerospace and military sectors remain full, but volumes are limited. Traditional chemical and civil titanium material sectors continue to see sluggish procurement, and large-scale restocking demand has yet to materialize. Military orders alone cannot offset the huge supply-demand gap in the civil sector. The September peak season expectations have largely fallen through, and the volume discount pattern persists. The industry has fallen into overall losses, but willingness to cut production remains insufficient. In the short term, the supply-demand imbalance shows no clear signs of repair, and prices still face downward pressure.

Titanium Materials

This week, TA1 titanium ingot prices stood at 55-57 yuan/kg, TA2 titanium ingot at 54-55 yuan/kg, and TC4 at 64-66 yuan/kg. Hot-rolled titanium plate (3-8mm) was quoted at 64-68 yuan/kg, titanium welded pipe at 105-110 yuan/kg, pure titanium bar at 105-110 yuan/kg, and pure alloy bar at 120-125 yuan/kg.

The titanium materials market is currently showing a clear divergence between hot and cold segments. September peak season expectations fell through, and overall demand remains sluggish. Civil side, off-season characteristics are prominent, with downstream only making just-in-time small-batch restocking. Low-end products face fierce price competition, and oversupply pressure is acute. High-end side, the trend is relatively independent, with aerospace and military sectors maintaining high prosperity. Top-tier players have full order books for aerospace-grade titanium materials, and high-end supply remains tight. In the short term, the structural pattern of surplus in civil segments and tightness in high-end segments is hard to change. Coupled with upstream titanium sponge prices approaching the cost line, providing bottom support, titanium material prices are expected to remain at low levels.

Weekly Summary

The titanium market overall consolidated on a weak note this week. Upstream, titanium concentrate supply was ample, with both domestic and imported volumes rising, while downstream pushed for lower prices, leaving ore prices under pressure. Midstream, titanium dioxide was supported by the peak season and pre-holiday stockpiling, with orders improving MoM, but end-user buying remained cautious and actual transaction prices lacked follow-through, keeping the market largely stable. Titanium sponge saw a prominent supply-demand imbalance, with high operating rates combined with sluggish civil demand. The industry is loss-making but production cuts are insufficient, leaving prices weak. The titanium materials market was clearly split, with civil segments sluggish and competition fierce, while aerospace and military segments had full orders and tight supply. Overall, end-use demand has not fully recovered, and the industry chain is dominated by just-in-time procurement. In the short term, the market is expected to remain divergent and weak-stable, with post-holiday restocking pace a key variable.

Outlook

In the short term, the titanium market is expected to remain stable. Some purchasing and restocking emerged ahead of the two holidays, but actual volumes and transaction prices did not meet expectations well. Market sentiment remains broadly cautious, and some titanium dioxide producers still mainly settle deals on a case-by-case basis, with certain discount room depending on clients and order volumes. Meanwhile, there are still individual producers proactively cutting prices for sales promotions due to capital or cost issues. This is not conducive to further market improvement. Downstream demand, though gradually released before the two holidays, still needs follow-through verification for sustained growth. Therefore, the titanium market is expected to remain largely stable in the short term.