Prices consolidate weakly, waiting for demand to recover during the September peak season [SMM Titanium Weekly Review]

This week, the titanium market showed minor fluctuations, with the market trend awaiting a September restart:

For titanium dioxide,

anatase titanium dioxide was quoted at 11,300-11,600 yuan/mt, averaging 11,450 yuan/mt, while rutile titanium dioxide was quoted at 12,500-13,000 yuan/mt, averaging 12,750 yuan/mt. Domestic chlorination-process titanium dioxide was quoted at 14,500-15,500 yuan/mt, averaging 15,000 yuan/mt.

Following a 300-yuan decline in the lower range of rutile titanium dioxide last week, the titanium dioxide market continued to consolidate at low levels this week. Prices remained temporarily stable, supported by long-term contracts, but downstream demand recovery remained sluggish. Major producers alleviated inventory pressure through hidden price cuts and sales promotions, intensifying industry competition and price wars. Currently, the sustained strength in sulphuric acid prices provides rigid cost support for titanium dioxide, reinforcing the market price floor.

For sponge titanium,

Grade 0 sponge titanium was quoted at 50,000-51,000 yuan/mt, averaging 50,500 yuan/mt, while Grade 1 sponge titanium was quoted at 48,000-50,000 yuan/mt, averaging 49,500 yuan/mt, with prices showing a pullback.

Seasonal demand weakness led to increased bargain-down purchasing behavior downstream, further compressing profit margins. The current market exhibited a downward trend, primarily driven by weaker titanium material prices. Sluggish end-use consumption transmitted price pressure upstream, causing sponge titanium prices to retreat from highs. Market transactions remained sluggish, with weak but stable conditions expected to persist in August.

For titanium slag,

acid-soluble titanium slag (Sichuan) was quoted at 5,820-5,845 yuan/mt, while standard 90-grade titanium slag mainstream quotations held steady at 6,300-6,500 yuan/mt compared to the previous working day.

The high-titanium slag market remained in the doldrums, with producers generally adopting a cautious wait-and-see approach. New tenders were gradually launched, but pricing remained unclear. The mainstream transaction price for 90-grade low-calcium-magnesium high-titanium slag had already dropped to an annual low of 6,690 yuan/mt in June. High raw material costs showed no signs of easing, forcing companies to maintain low operating rates, while downstream players also faced supply-demand dilemmas. Significant market improvements were unlikely in the short term.
 

Currently, the entire titanium industry chain operated under pressure, with all segments caught in a tug-of-war between "cost support and weak demand." Titanium dioxide faced dual pressures from hidden price wars and raw material costs, sponge titanium grappled with seasonal demand weakness, and the titanium slag market remained weak amid high costs and unclear tender pricing. In the short term, sluggish end-use demand will continue to limit upside room for prices, with market differentiation expected in September.