High-end demand remains strong, while basic varieties continue to face pressure [SMM Titanium Weekly Review]

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Titanium Concentrate

This week, the prices of domestically produced titanium concentrate (TiO2≥47%) ranged from 2,000 to 2,150 yuan/mt, while titanium concentrate (TiO2≥46%) maintained prices between 1,700 and 1,750 yuan/mt.

Currently, the titanium concentrate market continues to exhibit seasonal weakness, with prices under pressure due to the drag from downstream titanium dioxide market trends. Purchase willingness on the demand side remains low, with a strong wait-and-see sentiment in the market, awaiting signals of a market recovery.

Titanium Dioxide

Rutile titanium dioxide ranges from 13,000 to 14,300 yuan/mt (FOB $1,890-$1,950/mt), anatase titanium dioxide from 12,000 to 12,800 yuan/mt, and chloride-process titanium dioxide from 16,000 to 17,000 yuan/mt.

The titanium dioxide industry has seen an expansion in production cuts, but downward pressure on prices has not yet eased. Mainstream producers' quotes remain in the 13,000 yuan/mt range, reflecting continued weak downstream demand. Export enterprises are actively seeking new orders to alleviate inventory pressure, but signs of an overall market recovery are still not evident.

Sponge Titanium

Grade 0 sponge titanium is priced at 53,500 yuan/mt, with an average price of 50,500 yuan/mt for Grade 1 and 49,500 yuan/mt for Grade 2.

The sponge titanium market has shown remarkable performance, driven by the landing of large overseas orders, leading to a significant increase in trading volume. Under the current tight supply situation, there is a strong bullish sentiment in the market, and it is expected that a new round of price adjustments will occur early next month.

Titanium Products

This week, TA1 titanium ingots range from 59,000 to 60,000 yuan/mt, and TC4 titanium ingots from 67,000 to 69,000 yuan/mt.

The titanium products market continues to exhibit a differentiated trend. Cost support from upstream sponge titanium, combined with an increase in military orders, has driven up prices for high-end products. However, in the civilian sector, affected by weak demand from industries such as chemicals, transaction prices have loosened somewhat.

Weekly Summary

This week, the titanium market continued to show a differentiated pattern, with upstream sponge titanium performing strongly, while titanium dioxide and titanium concentrate remained in a downward trend. In the short term, military demand will continue to support prices for high-end titanium products, but recovery in the civilian sector will still take time. It is recommended to pay attention to the landing of overseas orders and the enforcement of domestic production cuts. SMM will also update the production and sales situation of manufacturers in June after thorough surveys.