This week, the performance of titanium market products was differentiated, with an overall atmosphere of mediocre supply and demand stalemate [SMM Titanium Weekly Review]

This week, the titanium market exhibited a pattern of minor fluctuations, with market trends awaiting a restart in September:

Titanium Concentrate

This week, the quotations for domestically produced titanium concentrate (TiO2≥46%) ranged from 1,680 to 1,750 yuan/mt, with an average price of 1,715 yuan/mt. For the specification with TiO2≥47%, the quotations ranged from 1,950 to 2,100 yuan/mt, with an average price of 2,025 yuan/mt, indicating a slight upward trend in prices.

This week, the domestic titanium concentrate market showed clear signs of recovery, with prices trending steadily upwards. From the perspective of the supply-demand pattern, this round of market recovery was mainly driven by two core factors: Firstly, with the end of the traditional summer break, the operating rates of downstream titanium dioxide and sponge titanium enterprises gradually rebounded, leading to a seasonal increase in raw material procurement demand. Secondly, the market prices of titanium dioxide stopped falling and stabilized, with the industry's profit margins recovering, providing solid cost support for upstream titanium concentrate prices.

Titanium Dioxide

This week, the domestic titanium dioxide market maintained a low-level consolidation trend. The quotations for anatase titanium dioxide ranged from 11,300 to 11,600 yuan/mt, with an average price of 11,450 yuan/mt. For rutile titanium dioxide, the quotations ranged from 12,500 to 13,000 yuan/mt, with an average price of 12,750 yuan/mt. The domestic quotations for chloride-process titanium dioxide ranged from 14,300 to 15,300 yuan/mt, with an average price of 14,800 yuan/mt.

This week, the titanium dioxide market continued to consolidate at low levels. According to an SMM survey, the main reasons for this market deadlock were: On the one hand, enterprises continued to face high inventory pressure, with the overall industry operating rate remaining low. On the other hand, there was a lack of stable support from downstream demand. This deadlock may persist until late August or early September, with subsequent attention needed on the guiding role of leading enterprises' movements on market trends.

Titanium Slag

This week, the quotations for acid-soluble titanium slag (Sichuan) ranged from 5,820 to 5,845 yuan/mt. The mainstream quotations for ordinary 90 titanium slag ranged from 6,300 to 6,500 yuan/mt, unchanged from the previous working day.

This week, titanium slag prices showed a weak performance, with titanium slag producers generally adopting a cautious wait-and-see attitude. One titanium slag producer set the price for 90% high-titanium slag at 5,850 yuan/mt, down 450 yuan/mt MoM from July, with a tender volume of 5,000 mt, marking a new low for the year. Due to the sustained high cost pressure from raw and auxiliary materials, with little substantive relief, producers continued to maintain a low operating rate supply state as seen previously. Additionally, titanium slag producers in the Yunnan region switched to producing acid slag, leading to a downward trend in titanium slag production. On the demand side, the downstream market faced a dilemma in both supply and sales. Overall, it is difficult for the high-titanium slag market to show significant improvement in the short term.

Sponge Titanium

This week, the quotations for Grade 0 sponge titanium ranged from 50,000 to 51,000 yuan/mt, with an average price of 50,500 yuan/mt. For Grade 1 sponge titanium, the quotations ranged from 48,000 to 50,000 yuan/mt, with an average price of 49,000 yuan/mt. After a slight downward adjustment last week, prices remained stable.

This week, the domestic titanium sponge market continued to be in the doldrums. Affected by the continuous expansion of capacity this year and the weak performance of downstream demand, the market as a whole presented an oversupply situation, breaking the previous high-level consolidation trend. It is worth noting that as the price of titanium slag, a raw material, declined, the production cost of titanium sponge decreased, and profit margins were passively expanded, further leading to a downward trend in product prices. The subsequent market trend requires close attention to the production adjustment this month, observing whether the industry can digest inventory pressure through active production cuts, thereby achieving a balance between production and sales and repairing the supply-demand relationship.

Titanium materials

​​​​​​​This week, the price of TA1 titanium ingot was 54-55 yuan/Kg, TA2 titanium ingot was 53-54 yuan/Kg, and TC4 was 63-64 yuan/Kg. This week, the quoted price of hot-rolled titanium plate (3-8mm) was 64-66 yuan/kg, titanium welded pipe was 95-105 yuan/kg, and pure titanium titanium bar was 105-115 yuan/kg, pure titanium titanium bar was 105-115 yuan/kg.

Affected by factors such as the delay in investment in chemical projects, demand was weak, and titanium material prices remained at the bottom consolidation level. With the support of raw material costs, manufacturers had limited room for price concessions, while the growth in military demand provided support, leading to a dilemma in the overall average price. Overall, the supply-demand stalemate in the titanium market persisted, with a mediocre market atmosphere. Buyers and sellers mostly adopted a wait-and-see attitude, lacking clear directional guidance. It is expected that the market will continue to be in the doldrums in the near future, with prices fluctuating rangebound within the current range.

Weekly Summary

This week, the performance of various titanium products in the market was differentiated. The price of domestically produced titanium concentrate slightly rebounded due to the increase in the operating rate of downstream enterprises and the stabilization of titanium dioxide prices. Titanium dioxide maintained a low-level consolidation, with high enterprise inventories, low operating rates, and weak downstream demand. Titanium slag was in the doldrums, with manufacturers being cautious. The price of 90% high-titanium slag from a certain manufacturer hit a new low for the year, and production declined. Titanium sponge continued to be weak, with capacity expansion and weak demand leading to oversupply, and cost reductions driving prices down. Titanium materials remained at the bottom consolidation level due to weak chemical demand and support from military demand. The overall market supply-demand stalemate persisted, with a mediocre atmosphere.

It is expected that the price of titanium concentrate will remain relatively stable next week based on the current rebound trend, and the seasonal growth in downstream demand is expected to continue, but the magnitude may be limited. The titanium dioxide market will still maintain a low-level consolidation, with enterprises facing difficulties in alleviating inventory pressure. If there is no significant improvement in downstream demand, prices are unlikely to improve. The price of titanium slag is likely to continue to be weak, with adjustments on the supply side but difficult to break through the demand dilemma. If the production adjustment in the titanium sponge market is not obvious, the oversupply situation will be difficult to change, and prices may continue to be under pressure. The titanium material market, affected by both chemical and military demands, will still fluctuate rangebound within the current price range, maintaining a weak and stable trend.