[SMM Titanium Weekly Review: Titanium Market Weakness Continues Awaiting Recovery in Peak Season]

Titanium concentrate

Last week, domestic titanium concentrate (TiO2≥46%) was quoted at 1,680-1,750 yuan/mt, with an average price of 1,715 yuan/mt. The TiO2≥47% specification was quoted at 1,950-2,100 yuan/mt, with an average price of 2,025 yuan/mt, unchanged WoW.

This week, the prices of domestic titanium concentrate remained stable. Currently, due to low downstream production, the off-season for the titanium concentrate market has been extended by 1-2 months compared to previous years. There is a strong sentiment in the current titanium ore market that prices have bottomed out, and there is hope for a slight increase after demand recovers in September. At the same time, imported ore prices are also expected to recover.

Titanium dioxide

Last week, the domestic titanium dioxide market saw anatase titanium dioxide quoted at 11,500-11,800 yuan/mt, with an average price of 11,650 yuan/mt; rutile titanium dioxide was quoted at 12,500-13,000 yuan/mt, with an average price of 12,750 yuan/mt; and chloride process titanium dioxide was quoted at 14,300-15,300 yuan/mt, with an average price of 14,800 yuan/mt.

Recently, several titanium dioxide companies have successively raised their product quotes, with domestic prices generally increasing by about 500 yuan/mt and export prices rising by approximately $70/mt. Market feedback indicates that downstream acceptance of the price hikes is limited, and actual transactions mostly continue at previous levels. Notably, in the case of rutile titanium dioxide, the price spread among different tier companies is gradually narrowing, with first-tier, second-tier, and third-tier company quotes becoming closer, intensifying market competition. A recovery in demand may still need to wait until the traditional peak season in September. Anatase titanium dioxide led the gains this week, with transaction prices slightly increasing. It is reported that manufacturers' inventories have been reduced to a certain extent, and it is expected that as demand recovers in September, transaction prices will further rise.

Titanium slag

Last week, acid-soluble titanium slag (Sichuan) was quoted at 5,820-5,845 yuan/mt; the mainstream quotation for ordinary 90 titanium slag was 6,300-6,500 yuan/mt, unchanged from the previous working day.

Titanium slag prices were in the doldrums. On the supply side, some titanium slag smelters maintained low operating rates due to losses. On the demand side, insufficient production in downstream industries such as sponge titanium and titanium dioxide means that demand for titanium slag is unlikely to see a significant increase in the short term, leading to a supply-demand imbalance. Prices lack upward momentum, and the titanium slag market is expected to continue fluctuating at lows in the near term. If demand for downstream products like titanium dioxide and sponge titanium recovers, it could potentially lead to a stabilization and recovery in titanium slag prices.

Sponge titanium

Last week, grade 0 sponge titanium was quoted at 50,000-51,000 yuan/mt, with an average price of 50,500 yuan/mt; grade 1 sponge titanium was quoted at 48,000-50,000 yuan/mt, with an average price of 49,000 yuan/mt. After a slight decrease last week, prices stabilized.

The domestic sponge titanium market continued to be in the doldrums. On one hand, the previous capacity expansion led to an oversupply that the downstream market struggled to fully absorb. On the other hand, the titanium material market has been persistently weak recently, with prices suppressed by high inventory and sluggish end-use demand, further impacting the sponge titanium sector, indicating a clear downward trend. Currently, there are no further production cuts announced by sponge titanium companies, and overall production remains stable, with a slight accumulation of inventory. Prices are expected to remain in the doldrums.

Titanium

TA1 titanium ingot prices were 54-55 yuan/Kg, TA2 titanium ingot prices were 53-54 yuan/Kg, and TC4 prices were 61-63 yuan/Kg. This week, hot-rolled titanium plate (3-8mm) was quoted at 60-61 yuan/kg, titanium welded pipe at 115-125 yuan/kg, pure titanium rod at 95-105 yuan/kg, and pure alloy rod at 120-130 yuan/kg.

Last week, the titanium metal market continued its weak performance, with persistent low end-use demand and high industry inventory creating a dual squeeze, forcing the entire industry chain into a price competition vortex. Although some companies have initiated production cuts to alleviate pressure, the core contradiction of supply-demand imbalance has not been fundamentally resolved, and the overall fundamentals remain weak. Specifically, due to weak demand from titanium material enterprises, processing fees for titanium ingot companies have been adjusted downwards; titanium material companies have lowered their processing fees to secure orders, while rising raw material and energy costs have increased cost pressures.

Weekly Summary

Last week, the titanium market as a whole remained weak, with most product prices holding steady. The average price of titanium concentrate remained stable, with a strong wait-and-see sentiment in the market, and the off-season extended, with a potential for a slight recovery in September, the traditional peak season. Although titanium dioxide companies raised their quotes, downstream acceptance was limited, and actual transactions remained weak, with fiercer competition for rutile products and a small lead in gains for anatase products. Titanium slag continued to be in the doldrums due to losses and insufficient demand. Sponge titanium quotations were stable but with a slight increase in inventory, and the weak trend persisted. The titanium material and ingot market, under pressure from weak end-use demand and high inventory, saw widespread pressure on processing fees, with many companies reducing prices to secure orders, alleviating pressure. Overall, the titanium market remains in a state of weak supply and demand, fluctuating at lows, and any future recovery will depend on the actual revival of demand during the traditional peak season in September.