Titanium dioxide prices continue to decline, while sponge titanium remains at a high level [SMM Spot Titanium Cargo Report]

SMM reported on July 2 that titanium dioxide (TiO₂) market prices continued to weaken today: the average price of rutile-type TiO₂ was 13,250 yuan/mt, anatase-type TiO₂ was 12,100 yuan/mt, and chloride-process TiO₂ was 16,400 yuan/mt; the average price of grade 0 titanium sponge was 53,500 yuan/mt, with prices continuing to rise.

Currently, the overall TiO₂ market remains weak. Leading enterprises have successively issued price adjustment announcements, and prices are expected to decline further. Domestic demand remains sluggish, coupled with the European market entering the summer break, overseas orders have significantly decreased, and there is a notable drive down in prices. Currently, the mainstream transaction prices of TiO₂ have fallen to 13,000 yuan/mt, and the downward trend has not yet bottomed out.

The titanium sponge market is in a stable state with robust supply and demand. Domestic rigid demand provides strong support, and there is a large volume of long-term contract signings. The mainstream transaction prices hover at highs. However, from the perspective of inventory, the inventory levels of producers remain high, and with the upcoming release of new capacity, it will be difficult to maintain prices at high levels in the future.

Outlook for the future: TiO₂ prices are expected to continue their downward trend. Although titanium sponge prices may maintain high levels in the short term, a subsequent correction is possible.