The import volume of titanium sponge in China has increased and the demand has increased.

According to the latest titanium outlook report of Roskill, the rising price of titanium sponge in China and the continuous growth of industrial applications indicate that the demand will increase in the future. The import of titanium sponge in China is increasing, and the domestic production is also increasing.

As early as 2016, China imported a large amount of titanium sponge, and since then the trade volume has increased year by year, reaching a peak of 7.1 kilotons in 2019.

Imports fell to 4.7 kilotons in 2020 as a result of the global epidemic, but China's titanium sponge imports reached 3.1 kilotons from January 2021 to April 2021 and could reach a record 9,000 tons if this trend continues.

Historically, China has exported about 5,000 tons of sponge titanium, but that figure has fallen to about 1,000 tons since 2018.

Due to the lack of certified manufacturers for the production of high-quality sponge materials suitable for the aerospace market, the production of titanium sponge in China mainly serves industrial applications.

Production increased from 53 kilotons in 2016 to about 88 kilotons in 2020 and is expected to increase further in 2021.

Industrial demand is less affected by the global pandemic, so China's sponge titanium production has not been affected by reduced aerospace demand.

The chemical industry is the main end-use sector of titanium demand in industrial applications, in which chlorine and PTA production are the main drivers.

World chlorine production is expected to grow from 75Mtpy to more than 95MtPY at a compound annual growth rate of 2.8 per cent by 2030, Roskill said, adding that this would be mainly driven by growth in China, which is expected to grow at a higher rate of 3.4 per cent a year.

China's chlor-alkali industry is expected to reach its effective capacity (assuming a utilization rate of 95%) by 2022 prime 2023, thus encouraging more capacity to meet future demand.

Another important industrial end-use sector is power generation, the report said. As the world shifts to a low-carbon future, nuclear power generation is expected to increase.

BP's energy outlook for 2050 shows that if global temperature rise is limited to 1.5 °C, nuclear power generation will increase by 38%. Of the 54 reactors currently under construction (defined by the World Nuclear Association as the first concrete-pouring reactors), 17 (31%) are in China.

According to the price of SMM, sponge titanium 68 yuan per kilogram in June 10 Daily, it has increased by 10 yuan per kilogram in the past six months.

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Prices have not yet reached pre-pandemic levels, but recent performance, coupled with increased trade activity and sponge production, suggests strong demand in China in the near term.