Titanium Prices Moved Weakly [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 Panzhihua-Xichang area were 2,150-2,200 yuan/mt, down 15 yuan/mt from a week ago.

Raw materials: The quotation for medium-grade titanium ore was 1,550 yuan/mt. The high price of medium-grade titanium ore has put significant cost pressure on small and medium-sized manufacturers, leading to producers raising prices, with quotations remaining firm in the short term.

Supply and demand: A sales manager from a large domestic beneficiation plant stated that the operating rate of titanium ore companies in Yunnan has been low recently. Considering the relatively tight supply of mainstream imported titanium concentrates, quotations have been high. Titanium dioxide companies have thus increased their procurement of domestic titanium ore, improving the demand for domestic ore. However, downstream titanium dioxide companies are currently in a traditional off-season. With continued weak downstream demand, the titanium ore market is under pressure and is expected to remain weak and stable in the short term.

【Titanium Dioxide Market】

Last week, the titanium dioxide market moved weakly and steadily. As of Friday, the mainstream quotations for rutile-type titanium dioxide were 15,400-16,800 yuan/mt, and for anatase-type titanium dioxide, the mainstream quotations were 14,200-15,000 yuan/mt.

Supply and demand: Last week, the titanium market was in a supply-demand stalemate. With the titanium dioxide market affected by rumours of a 1,000 yuan/mt price cut in June, downstream procurement has gradually slowed. Considering that major titanium dioxide producers are gradually entering a stockpiling phase, titanium dioxide companies have certain inventories. The current orders on hand support the titanium dioxide prices entering a stage of stability. However, downstream titanium dioxide companies are increasingly adopting a wait-and-see attitude, even delaying procurement. Under inventory pressure, titanium dioxide companies may make some concessions. However, given the firm titanium ore prices, the room for price concessions by titanium dioxide companies is limited. SMM expects titanium dioxide prices to move weakly.

【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 50,000-52,000 yuan/mt.

Supply and demand: With the gradual release of new production capacity and the high operating rate of sponge titanium companies, the supply capacity of sponge titanium has increased. However, this has also increased the pressure on sponge titanium companies to sell, putting pressure on sponge titanium prices. Rumours suggest that the transaction price of first-grade sponge titanium has slightly decreased, and it is expected that sponge titanium prices will move weakly.