Cost-Driven Titanium Industry Chain: High Sulfuric Acid Prices Intensify Market Divergence [SMM Titanium Weekly Review]

Titanium Concentrate

This week, mainstream quotations for domestic titanium concentrate (TiO2≥46%) were 1,700-1,760 yuan/mt, with an average price of 1,730 yuan/mt; quotations for the TiO2≥47% specification were 1,950-2,100 yuan/mt, with an average price of 2,025 yuan/mt.

The titanium ore market showed divergent trends this week, with domestic ore holding steady while imported ore was under pressure. On the domestic ore side, upstream reluctance to budge on prices was high, but downstream acceptance was limited. With cost pressure from titanium dioxide continuously being passed down, purchasing sentiment to drive down prices was strong. Small and medium-sized miners' quotations remained generally stable overall, and market wait-and-see sentiment was evident. For imported ore, port arrivals decreased due to the dry season in Nigeria, leading to tighter circulating resources; however, suppressed by weak domestic demand, prices remained in the doldrums. Ore prices are expected to remain in the doldrums.

Titanium Dioxide

This week, domestic titanium dioxide prices were as follows: anatase titanium dioxide quotations were 11,800-12,200 yuan/mt, averaging 12,000 yuan/mt; rutile titanium dioxide quotations were 12,900-13,700 yuan/mt, averaging 13,300 yuan/mt; and domestic chloride process titanium dioxide quotations were 14,700-15,700 yuan/mt, averaging 15,200 yuan/mt.

The titanium dioxide market remained firm this week, supported by raw material sulphuric acid costs. Post-holiday, most enterprises issued secondary price adjustment letters, pushing quotations upward. However, Q4 orders from the downstream coatings industry weakened again, showing a price inversion trend in the industry chain. In the overseas market, India showed signs of loosening after the cancellation of anti-dumping duties, but buyers maintained a wait-and-see attitude. Overseas orders are expected to be gradually released starting November, potentially reopening the export market. Although cost pressure pushed up quotations, current transaction levels remained low, creating a gap between inflated market quotations and actual transactions, and enterprises still face significant operational pressure.

Titanium Slag

This week, acid-soluble titanium slag (Sichuan) quotations were 5,820-5,870 yuan/mt; mainstream quotations for regular 90 titanium slag were 5,200-5,400 yuan/mt.

The titanium slag market remained in the doldrums overall this week. For high-titanium slag, the new round of tender prices in the north continued to decline, market demand was sluggish, production costs remained high, and enterprises generally maintained low operating rates. The acid slag market was also under pressure, with weak domestic demand and sluggish market transactions. Electricity price adjustments in Yunnan further exacerbated cost pressure. Currently, slag plant inventory is generally low, and expectations of the market hitting bottom have strengthened. The titanium slag market is expected to remain in the doldrums in the short term, with the struggle between cost support and weak demand continuing.

Sponge Titanium

This week, Grade 0 sponge titanium quotations were 48,000-49,000 yuan/mt, averaging 48,500 yuan/mt; Grade 1 sponge titanium quotations were 47,000-48,000 yuan/mt, averaging 47,500 yuan/mt; Grade 2 sponge titanium quotations were 46,000-47,000 yuan/mt, averaging 46,500 yuan/mt, as prices declined again.

This week, the titanium sponge market remained in the doldrums, with demand in the civilian sector continuing to be sluggish and orders further contracting in Q4. Influenced by the "rush to buy amid continuous price rise and hold back amid price downturn" mentality, downstream procurement was generally cautious. Coupled with weak cost support, the overall market's pattern of being under pressure was difficult to improve.

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 61-63 yuan/kg. The quoted price for hot-rolled titanium plate (3-8mm) was 60-61 yuan/kg, titanium welded pipe was 115-125 yuan/kg, pure titanium bar was 95-105 yuan/kg, and pure alloy bar was 120-130 yuan/kg.

This week, the domestic titanium metal market continued its differentiated pattern: high-end titanium materials remained stable, supported by special demand from aerospace, deep-sea equipment, and other sectors, with sufficient orders; however, in the civilian sector, constrained by weak downstream procurement and high operating rates, the supply-demand imbalance intensified. Current market quotations were generally under pressure, enterprises' willingness to sell increased, social inventory showed an accumulation trend, and short-term prices are expected to remain under downward pressure.

Weekly Summary

This week, the titanium industry chain showed a divergent trend, driven by high raw material costs such as sulphuric acid. Titanium dioxide enterprises maintained a stance of refusing to budge on prices, supported by persistently strong sulphuric acid prices, but cost pressures were difficult to effectively pass on to downstream sectors. Weak industry orders in the coatings sector highlighted price inversion phenomena. The titanium slag market was squeezed by high raw material costs, such as sulphuric acid, and sluggish demand, with enterprises' operating rates remaining low. Although the titanium sponge and titanium materials markets were generally under pressure, the high-end segment maintained relative resilience supported by special demand. Currently, raw material prices, such as sulphuric acid, have become a core factor affecting the profitability of various segments in the titanium industry chain. Amid the struggle between high costs and weak demand, the market is expected to continue its weak operating pattern in the short term.