[SMM Announcement] Addition of Grade 0 Sponge Titanium FOB Price Point

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To facilitate better market fluctuation control for upstream and downstream enterprises in the sponge titanium industry and to promptly reflect spot market price trends, reduce transaction risks and costs in the sponge titanium market, and continuously improve and deepen research on the titanium industry chain, SMM, after a period of consolidation and market surveys, will begin publishing a new 0-grade sponge titanium FOB price point starting November 4 for market reference. 

I. General Principles of the SMM Price Assessment Methodology

Shanghai Metals Market (hereinafter referred to as SMM) is a completely independent third-party service organization that does not participate in any substantive transactions. Instead, it maintains close communication with buyers or sellers as market observers or organizers and provides relevant services to the market. SMM continuously develops, reviews, and revises its methodology through communication with industry professionals, adopting the most common product specifications, trade terms, and trade conditions in the industry. Equal importance is given to normal transactions that meet the standard specifications. SMM reserves the right to exclude any price information deemed less reliable or unrepresentative from its price assessments.

SMM publishes daily metal spot prices (or indices, etc., including markets within or outside China), commonly referred to as SMM prices. SMM has established corresponding methodologies for all published SMM prices (which will be available for reference on SMM’s official website, www.smm.cn). These methodologies specify the formation and publication methods and procedures for SMM prices, which are strictly adhered to in the generation and release of SMM prices.

To align with the actual conditions of the spot market, SMM will make necessary revisions to the SMM price assessment methodology and announce them on the official website www.smm.cn 28 days before formal implementation. For any questions or suggestions regarding SMM prices or their methodology, please contact SMM customer service (contact information can be found on the official website www.smm.cn).

This document specifies the formulation standards and management methods for the 0-grade sponge titanium FOB spot price. The purpose of establishing this standard by SMM is to create a transparent and verifiable mechanism for SMM price formation, providing market participants with an important pricing benchmark.

II. Formation of the SMM 0-Grade Sponge Titanium FOB Price

2.1 Definition

The SMM 0-grade sponge titanium FOB spot price is an assessed price formed and published by SMM in accordance with this methodology, which can be used by trading parties as a reference for settling 0-grade sponge titanium FOB spot trades. This price reflects the actual transaction prices of various enterprises at the time of each full working day's SMM 0-grade sponge titanium FOB spot price publication, as well as the assessed range of the most likely transaction prices for ex-works spot trades, primarily based on the national spot transaction price conditions of the day.

2.2 SMM Adds New Titanium Dioxide-Related Price Points

Grade 0 Sponge Titanium FOB

2.3 Price Generation Methodology

SMM collects data for the assessment of the Grade 0 Sponge Titanium FOB price through price collection, i.e., gathering original data information that meets SMM standards. This includes bids and offers from buyers and sellers provided by price submitters that were not transacted on the day, as well as actual transaction prices of spot cargoes concluded and provided by price submitters.

2.4 Price Collection Methodology

SMM price analysts regularly collect data related to the Grade 0 Sponge Titanium FOB price from price submitters via telephone, QQ, WeChat, fax, and email during each trading day between 9:30 AM and 11:00 AM. This price data may include transacted prices on the day, the most probable expected transaction prices anticipated by enterprises, offers, etc. All instant messaging content, email communications, and records of any face-to-face discussions will be archived; details of telephone conversations will be summarized and entered into the database. This price data must represent typical, repeatable transactions between non-related market participants (financially and legally independent). SMM price analysts must comply with the Compliance Policy when reporting to their supervisors any communication from market participants that is coerced or threatened, or any induced offers attempting to influence the assessment results. Once the price is published, SMM will not make corrections or adjustments on the same day.

2.5 Product Standard

Complies with the GB/T 2524-2019 standard;

Specifications: Ti ≥ 99.7%, Fe ≤ 0.04%, Si ≤ 0.01%, Cl ≤ 0.06%, C ≤ 0.02%, N ≤ 0.010%, O ≤ 0.060%, Mn ≤ 0.01%, Mg ≤ 0.02%, H ≤ 0.003%, Ni ≤ 0.02%, Cr ≤ 0.02%.

2.6 Unit of Price

US dollar/mt

2.7 Delivery Terms

FOB China ports - main ports such as Guangzhou Port, Shanghai Port, and Tianjin Port

2.8 Update Time

11:00 AM - 11:30 AM each trading day

III. Methodology Changes

All markets evolve, and SMM has a responsibility to ensure that the methodology for market reporting changes in step with the markets. Therefore, SMM conducts regular internal reviews of the appropriateness of the methodology based on industry feedback. For all substantive but non-urgent potential modifications, SMM will follow a formal external consultation process. Major changes are then announced with a notice period of at least 28 days, inviting industry comments, unless special circumstances, particularly force majeure (natural disasters, war, exchange bankruptcy, etc.), necessitate a shorter notice period. SMM commits to carefully review all comments regarding proposed methodology changes, but in certain circumstances, it may have to proceed with methodology amendments against the wishes of some market participants. Additionally, SMM has a formal methodology consultation process.

SMM Information & Technology Co., Ltd. Titanium Industry Research Team October 28, 2025