Under the surplus pressure of titanium sponge supply, enterprises collectively cut production to stabilize prices [SMM Titanium Spot Cargo Bulletin]

SMM reported on July 24 that today's quotes for Grade 0 titanium sponge are 52,000-53,000 yuan/mt, Grade 1 titanium sponge are 49,000-50,000 yuan/mt, and Grade 2 titanium sponge are 48,000-49,000 yuan/mt.

The supply of titanium sponge in the market has increased significantly, while the growth rate of demand for downstream titanium materials has been slow, leading to an oversupply phenomenon in the market again and putting pressure on titanium sponge prices. Based on the price trend in 2024, titanium sponge prices have already shown signs of decline. Downstream processing enterprises are pushing down procurement prices, further squeezing the profits of titanium sponge enterprises and creating a chain-reaction squeezing effect. To stabilize current prices, Yunnan Guotai Metal Co., Ltd. responded to the anti-"rat race" competition policy and decided to cut production by 30% in its titanium sponge production line in Q3. Other titanium sponge enterprises have also expressed their willingness to cut production. With the expectation of reduced titanium sponge supply, it is anticipated that titanium sponge prices will remain stable.