SMM December 18 News:
Affected by factors such as continuous production cuts by multiple companies and increased restocking activities before the holiday, the supply-demand relationship in the sponge titanium market has shifted. Currently, the market has entered a destocking phase, causing sponge titanium prices, which had remained flat for nearly two months, to rise on December 18. This marks the first increase since the overall downward trend began on May 14.
Sponge Titanium Fell Over 13% in the Past Year; Supply-Demand Reversal Leads to Price Increase
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According to SMM quotations, on December 18, sponge titanium prices ranged from 44,000 to 45,000 yuan/mt, with an average price of 44,500 yuan/mt. The average price increased by 1,000 yuan/mt compared to the previous trading day, a rise of 2.3%.
Reviewing the historical price trends of sponge titanium's average price, it can be observed that since October 22, the average price of sponge titanium had remained flat at 43,500 yuan/mt. This year, with the successive putting into operation of new sponge titanium capacity by multiple companies, sponge titanium prices have been on an overall downward trend. The average price of sponge titanium began its decline from its annual high of 52,500 yuan/mt on May 14. The average price of sponge titanium on December 18, at 44,500 yuan/mt, represents a decrease of 7,000 yuan/mt, or 13.59%, compared to the average price of 51,500 yuan/mt on December 29, 2023. According to SMM, this recent increase in the average price of sponge titanium was mainly driven by the continued deepening of production cuts by multiple sponge titanium companies and the supply-demand reversal brought about by pre-holiday restocking.
Outlook
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According to SMM, apart from the less-than-ideal demand for sponge titanium in the chemical and metallurgical fields, downstream demand for sponge titanium has remained relatively stable this year, with demand in the 3C electronics sector being particularly strong, contributing significantly to the stability of downstream demand for sponge titanium. However, the successive putting into operation of new sponge titanium capacity by multiple companies has led to oversupply in the market, resulting in a decline in sponge titanium prices. With the gradual deepening of production cuts by multiple sponge titanium companies and the increased demand driven by pre-holiday restocking, the supply-demand relationship in the market has gradually shifted. Sponge titanium companies have started to tentatively raise product prices, and some downstream companies have begun to accept the price increases. In the future, SMM will monitor whether the price increases for sponge titanium can be fully implemented and will also focus on the extent of continued production cuts by sponge titanium companies and their impact on supporting sponge titanium prices.
