Prices consolidate weakly, with the market waiting for demand to recover [SMM Titanium Weekly Review]

Titanium Concentrate

The quoted prices for domestic titanium concentrate (TiO2≥46%) range from 1,650 to 1,700 yuan/mt, with an average price of 1,675 yuan/mt. For the specification with TiO2≥47%, the quoted prices range from 1,950 to 2,100 yuan/mt, with an average price of 2,025 yuan/mt. Prices remain stable for now, but market sentiment is low.

Affected by production cuts in titanium dioxide enterprises, demand remains weak. Coupled with the competitive pressure from imported ore prices, domestic miners are facing significant inventory backlogs. Despite some small and medium-sized miners actively reducing prices to destock, downstream purchases are still mainly driven by immediate needs, resulting in sluggish market transactions. Prices may continue to be in the doldrums in the short term.

Titanium Dioxide

The quoted prices for anatase titanium dioxide range from 11,500 to 12,000 yuan/mt, with an average price of 11,750 yuan/mt. For rutile titanium dioxide, the quoted prices range from 12,500 to 13,600 yuan/mt, with an average price of 13,050 yuan/mt. The domestic quoted prices for chloride-process titanium dioxide have decreased by 200 yuan to 15,400-16,400 yuan/mt.

Price adjustments by leading enterprises have triggered a wave of price reductions. High costs and weak end-use demand have formed a double squeeze, resulting in significant inventory pressure for titanium dioxide enterprises. In terms of exports, the FOB price for rutile titanium dioxide is $1,875/mt, while the FOB price for chloride-process titanium dioxide is $2,200/mt. However, overseas order growth is limited, and it is expected that weak domestic demand in Q3 will dominate the market, leading to a continued downward trend.

Sponge Titanium

The quoted prices for Grade 0 sponge titanium range from 53,000 to 54,000 yuan/mt, with an average price of 53,500 yuan/mt. For Grade 1 sponge titanium, the quoted prices range from 50,000 to 51,000 yuan/mt, with an average price of 50,500 yuan/mt. Prices remain stable.

Orders in the aerospace sector have decreased seasonally, while demand growth in the civilian sector is sluggish. Coupled with the release of new production capacity, the market's supply and demand situation has become loose. Some producers have alleviated pressure by extending delivery periods. If the price of magnesium ingots, a raw material, further pulls back later, sponge titanium prices may face the risk of a price correction.

Titanium Products

The quoted prices for titanium plates (TA2/3-8mm) range from 63 to 65 yuan/kg, titanium pipes (TA2/25*2mm) range from 120 to 130 yuan/kg, and titanium alloy bars (TC4) range from 67,000 to 69,000 yuan/mt. Prices remain generally stable, but transactions are weak.

The procurement cycle for terminal equipment manufacturing has been extended, and traders' willingness to stock up is low, resulting in a market characterized by "high prices but no transactions." In the short term, titanium product prices may remain high and range-bound due to the cost support from sponge titanium, but actual transactions will depend on the recovery of demand during the traditional peak season in H2.

Weekly Summary

In the short term, the titanium industry chain will continue to be in the doldrums, with significant downward pressure on prices. The titanium concentrate market is facing significant destocking pressure due to weak demand from titanium dioxide enterprises and the impact of imported ore, and prices may further come under pressure. Titanium dioxide enterprises, squeezed by high costs and insufficient domestic demand, will continue to see their profit margins shrink and may adopt a strategy of price reductions and destocking in Q3. Although sponge titanium prices remain stable for now, the loose supply and demand situation has emerged, and if the raw material side loosens, it may trigger a price correction. Titanium products are constrained by delayed terminal procurement, resulting in low market activity, but price declines will be limited due to cost support. Overall, before the traditional peak season from late August to September, it is difficult for the market to recover substantially, and SMM will continue to conduct surveys and follow-ups.