Titanium products face a cold market, and the off-season effect is hard to reverse [SMM Titanium Weekly Review]

This week, titanium market prices experienced narrow fluctuations, but prices of various products showed a trend of change:

Titanium concentrate

Domestic titanium concentrate (TiO2≥46%) was quoted at 1,680-1,750 yuan/mt, with an average price of 1,675 yuan/mt. The specification with TiO2≥47% was quoted at 1,950-2,100 yuan/mt, with an average price of 2,025 yuan/mt. Prices remained stable for the time being, but market sentiment was low.

Currently, titanium concentrate producers are restricting the outward shipment of raw ore, and there is a shortage of Sinomine Resource Group. The price of 46 titanium ore provides bottom support, but downstream titanium dioxide enterprises are affected by the off-season effect, with weak demand. Titanium ore prices are showing bottom consolidation.

Titanium dioxide

Anatase titanium dioxide was quoted at 11,300-11,600 yuan/mt, with an average price of 11,450 yuan/mt. Rutile titanium dioxide was quoted at 12,200-13,300 yuan/mt, with an average price of 12,750 yuan/mt. The domestic quotation for chloride-process titanium dioxide was reduced by 600 yuan to 14,500-15,500 yuan/mt.

Currently, the titanium dioxide industry continues to adopt a strategy of production cuts to maintain prices. Some large enterprises initiated routine maintenance this month, further reducing market supply, which may have an impact on the supply-demand pattern. The demand side shows weakness, with the coating industry continuing to fall short of expectations. Coupled with the summer off-season, end-user purchase willingness is low. The market generally expects that the timing of market recovery may be postponed to September.

Sponge titanium

Grade 0 sponge titanium was quoted at 50,000-53,000 yuan/mt, with an average price of 51,500 yuan/mt. Grade 1 sponge titanium was quoted at 49,000-50,000 yuan/mt, with an average price of 49,500 yuan/mt. Prices remained stable.

Affected by the traditional sluggish demand, the phenomenon of bargain down purchasing prices in the downstream market has become increasingly frequent, directly leading to a continuous narrowing of the overall profit margin of the industry. To effectively stabilize the market price order, Yunnan Guotai took the lead in announcing that it would implement a 30% production cut plan in Q3. This move quickly attracted industry attention, and other major producers have also shown intentions to follow suit. Under the market expectation of active supply-side contraction, prices are likely to remain stable in the short term to balance market fluctuations caused by the current supply-demand relationship.​

Summary of the Week

Recently, the overall titanium-related product market has been mediocre, with varying performances among different categories. The titanium concentrate market has low sentiment, with producers restricting the outward shipment of raw ore. The shortage of Sinomine Resource Group supports prices for some specifications, but prices are consolidating at the bottom due to weak off-season demand from the downstream. The titanium dioxide industry continues to adopt production cuts to maintain prices, with some large enterprises conducting maintenance this month to reduce supply. The demand side is weak due to poor performance in related industries and the summer off-season, with low purchase willingness. Market recovery may be postponed to September. Affected by the traditional sluggish demand, downstream bargain down purchasing prices have led to a narrowing of profit margins. Under the expectation of supply contraction, prices are likely to remain stable in the short term.​