Titanium Dioxide Leads the Gains, Sponge Titanium Under Pressure, Overall Demand Awaits Realization in the September Peak Season [SMM Titanium Weekly Review]

Titanium Concentrate

This week, mainstream quotations for domestic titanium concentrate (TiO2≥46%) were 1,680-1,760 yuan/mt, with an average of 1,720 yuan/mt; for TiO2≥47% specification, quotations were 1,950-2,100 yuan/mt, with an average of 2,025 yuan/mt, up 5 yuan WoW.

Since this week, driven by active trading in the downstream titanium dioxide market, titanium concentrate demand showed signs of recovery. As the industry entered the traditional peak season in September, market purchasing enthusiasm improved, coupled with relatively tight supply, jointly pushing titanium concentrate prices up slightly. The market is expected to maintain a generally stable with slight rise trend in the short term.

Titanium Dioxide

This week, domestic titanium dioxide prices: anatase titanium dioxide was quoted at 11,700-12,000 yuan/mt, averaging 11,850 yuan/mt; rutile titanium dioxide was quoted at 12,800-13,400 yuan/mt, averaging 13,100 yuan/mt; chloride process titanium dioxide was quoted at 14,700-15,700 yuan/mt domestically, averaging 15,200 yuan/mt.

This week, titanium dioxide prices rose significantly, with widespread increases across major categories, particularly notable for sulphuric acid process titanium dioxide. Key drivers for this round of price hikes include: first, the effects of earlier proactive production cuts and inventory clearance became evident, with most enterprises now holding low inventory levels; second, an unexpected accident halted production at a sulphuric acid process line of a leading domestic enterprise, further tightening supply; additionally, in the overseas market, international giant Venator announced the closure of its European sulphuric acid process plant and faced bankruptcy, which not only expanded the overseas supply gap but also created substitution opportunities for Chinese sulphuric acid process titanium dioxide exports. Driven by multiple factors, market sentiment has been bullish since September, with some enterprises issuing second price adjustment letters by mid-month. Actual transaction prices for titanium dioxide are expected to continue rising by month-end.

Titanium Slag

This week, acid-soluble titanium slag (Sichuan) was quoted at 5,820-5,845 yuan/mt; mainstream quotations for regular 90 titanium slag were 5,500-5,600 yuan/mt.

Recently, the high titanium slag market continued in the doldrums. Early this month, tender prices from northern enterprises dropped to 5,650 yuan/mt, down 200 yuan MoM. High operating costs for upstream raw and auxiliary materials, combined with weak downstream demand, have left producers generally in production difficulties. Under the dual weakness in supply and demand, high titanium slag prices are under significant pressure, with the overall market showing a weak trend.

Sponge Titanium

This week, Grade 0 sponge titanium was quoted at 49,000-50,000 yuan/mt, averaging 49,500 yuan/mt; Grade 1 sponge titanium at 48,000-50,000 yuan/mt, averaging 49,000 yuan/mt; Grade 2 sponge titanium at 47,000-48,000 yuan/mt, averaging 47,500 yuan/mt, with prices remaining stable.

This week, sponge titanium prices were under pressure again, with mainstream quotations for grade 0 sponge titanium down by 1,000 yuan/mt. The current market shows a weak supply-demand pattern: although some sponge titanium producers have implemented production cuts, the actual effect has not yet been clearly seen; meanwhile, downstream titanium material market procurement remains cautious, with no expected peak season demand in September. Overall, both supply and demand sides of the industry appear weak, and sponge titanium prices are expected to remain in the doldrums in the short term.

Titanium Materials

This week, 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. Hot-rolled titanium plate (3-8mm) quotations were 60-61 yuan/kg, titanium welded pipe quotations were 115-125 yuan/kg, pure titanium rod quotations were 95-105 yuan/kg, and pure alloy rod quotations were 120-130 yuan/kg.

This week, the domestic titanium metal material market continued its stable trend, with spot transactions persistently showing a weak supply-demand pattern. Demand side exhibited typical cautious procurement characteristics, with downstream enterprises generally adopting a sales-based production strategy, only maintaining rigid restocking for basic production needs, and substantial signs of demand recovery remained unclear. Considering the current support from firm raw material prices, titanium material prices are expected to be more likely to rise than fall.

Weekly Summary

This week, the titanium industry chain overall showed a divergent trend. Upstream titanium concentrate, driven by downstream titanium dioxide, saw a slight increase, with quotations up by 5 yuan/mt, and market sentiment was generally stable with a slight rise; titanium dioxide rose sharply with the boost of multiple factors, with significant increases in sulfuric acid method products, low enterprise inventory, and sudden tightening of domestic and overseas supply jointly pushing up price expectations, and some enterprises have issued second price adjustment notices. However, mid- and downstream products performed weakly: titanium slag continued to be weak due to high costs and sluggish demand, with tender prices down MoM; sponge titanium quotations fell by 1,000 yuan/mt, with the weak supply-demand pattern unchanged, production cut effects not yet visible, and peak season demand in September falling short of expectations; the titanium material market was overall stable but transactions were sluggish, with downstream mostly purchasing as needed, and although prices were supported by costs, they struggled to break upward. Overall, the market remains in a "strong raw material, weak processing" structure, and the actual fulfillment of peak season demand in September will be key to the subsequent trend.