Downstream Demand Sluggish, Weak Titanium Market [SMM Analysis]

[Titanium Concentrate Market]

Last week, the domestic titanium ore market moved weakly and steadily. As of Friday, the mainstream quotations for titanium concentrates (Tio2≥46%) in the Panxi region were between 2,180-2,200 yuan/mt.

Supply and demand: A sales manager from a large beneficiation plant stated that the demand for high-quality ore resources is moderate, and suppliers of high-quality ore have relatively firm quotations. In contrast, prices for slightly lower-quality titanium ore are highly competitive. Considering that mainstream imported titanium concentrate sources have been relatively tight recently, leading to higher quotations, titanium dioxide companies increased their procurement of domestic titanium ore, thereby improving domestic ore demand. It is expected that titanium ore will remain stable at lows in the short term.

[Titanium Dioxide Market]

Last week, the titanium dioxide market experienced a downward trend. As of Friday, the mainstream quotations for rutile-type titanium dioxide were between 15,400-16,800 yuan/mt, and for anatase-type titanium dioxide, the mainstream quotations were between 14,200-15,000 yuan/mt.

Supply and demand: As downstream procurement slows down, the off-season effect of the titanium dioxide market is gradually emerging. Major titanium dioxide producers are gradually experiencing inventory accumulation. The current orders on hand support the titanium dioxide prices. However, some companies may resort to price competition to ease pressure. Additionally, considering the further imbalance in supply and demand due to the release of new production capacity and the decline in titanium dioxide exports in April, SMM expects significant pressure on titanium dioxide prices.

[Titanium Metal Market]

Last week, the sponge titanium market moved weakly and steadily. As of Friday, the mainstream quotations for first-grade sponge titanium were between 50,000-52,000 yuan/mt.

Supply and demand: With the gradual release of new production capacity and high operating rates of sponge titanium enterprises, market demand remained weak, and sponge titanium enterprises faced significant pressure. However, supported by costs, sponge titanium prices will remain weak and stable in the short term.