Supply-Demand Pattern Dominated the Market, Prices Across the Titanium Industry Chain Diverged Significantly Last Week [SMM Titanium Weekly Review]

Titanium Ore

This week, the quotation for domestic titanium ore (TiO2≥46%) was 1,700-1,760 yuan/mt, with an average price of 1,730 yuan/mt. The quotation for TiO2≥47% specification was 1,950-2,100 yuan/mt, with an average price of 2,025 yuan/mt.

Titanium ore prices remained stable this week. The core reason lies in the mutual checks and balances between the rigid demand from downstream and the ample supply in the market, forming a temporary weak supply-demand balance.

Titanium Dioxide

This week, the domestic titanium dioxide market saw anatase type quoted at 11,800-12,200 yuan/mt, with an average price of 12,000 yuan/mt; rutile type at 12,700-13,500 yuan/mt, with an average price of 13,100 yuan/mt; and chloride process titanium dioxide at 14,700-15,700 yuan/mt, with an average price of 15,200 yuan/mt.

Titanium dioxide prices were in the doldrums this week, with the transaction center shifting downward. Downstream purchase willingness was low, mainly focusing on driving down prices, leading to continuous softening of actual negotiation prices. In terms of inventory structure, small and medium-sized enterprises have reduced their inventories, mostly to fulfill previous orders, while large enterprises still face significant inventory pressure. Looking ahead to November, the titanium dioxide market will still rely on external demand support. However, with high overall domestic inventory and no significant reduction in supply, the market outlook remains pessimistic.

Titanium Slag

This week, the quotation for acid-soluble titanium slag (Sichuan) was 5,820-5,845 yuan/mt, and the mainstream quotation for ordinary 90 titanium slag was 5,200-5,400 yuan/mt.

The weak situation in the high-titanium slag market has continued to deepen recently. At the beginning of the month, the tender price of northern enterprises dropped to 5,440 yuan/mt, down 200 yuan MoM. The market is facing dual pressures from high costs and weak demand. High auxiliary material costs and product price reductions have led to increased losses for titanium slag enterprises. Weak downstream demand cannot provide market support, and under the dual weakness of supply and demand, enterprises generally face operational difficulties. The current market focus is on the next round of tender prices, which may see a slight rebound in the next steel tender.

Sponge Titanium

This week, the quotation for grade 0 sponge titanium was 47,000-48,000 yuan/mt, with an average price of 47,500 yuan/mt; grade 1 sponge titanium was 46,000-47,000 yuan/mt, with an average price of 46,500 yuan/mt; and grade 2 sponge titanium was 45,000-46,000 yuan/mt, with an average price of 45,500 yuan/mt. Prices remained stable.

The slight increase in production this month was mainly due to some enterprises not fully implementing their planned production cuts, gradually resuming production. From the perspective of demand structure, the high-end sponge titanium market performed well, but civilian sector orders contracted. Some manufacturers sold at lower prices this week, leading to a decrease in overall market prices.

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. This week, the quotation for hot-rolled titanium plate (3-8mm) was 60-61 yuan/kg, titanium welded pipe was 115-125 yuan/kg, pure titanium rod was 95-105 yuan/kg, and pure alloy rod was 120-130 yuan/kg.

This week, the domestic titanium metal market showed significant structural divergence, with distinct trends in high-end and low-end sectors. The high-end titanium processed materials market performed strongly, driven by robust demand from military, deep-sea equipment, and other sectors, leading to significant growth in orders. The low-end market remained under pressure, with oversupply intensifying, weak downstream consumer product procurement, and high industry production and operating rates. The supply-demand imbalance is difficult to alleviate in the short term. Overall market prices operated at low levels, enterprise quotations slightly loosened, social inventory accumulated modestly, and prices remained under downward pressure.

Weekly Summary

This week, various segments of the domestic titanium industry chain showed divergent performance, with prices exhibiting structural differences. Titanium concentrate prices remained stable; the average price for the TiO₂≥46% specification was 1,730 yuan/mt, and for the TiO₂≥47% specification was 2,025 yuan/mt, as downstream rigid demand and ample supply formed a weak balance. The titanium dioxide market fell, with average prices for anatase, rutile, and chloride process products at 12,000 yuan/mt, 13,100 yuan/mt, and 15,200 yuan/mt, respectively. Weak downstream procurement coupled with high inventory at large enterprises led to a downward shift in the transaction center. The titanium slag market weakened further; quotations for acid-soluble and standard 90-grade titanium slag were 5,820-5,845 yuan/mt and 5,200-5,400 yuan/mt, respectively. Under dual pressure from costs and demand, enterprise losses widened. Sponge titanium prices stabilized, with average prices for various grades at 45,500-47,500 yuan/mt; production rebounded slightly, but civilian orders contracted. The titanium materials market showed significant divergence: high-end processed materials benefited from order growth driven by military and other demand, while the low-end market faced oversupply, with overall prices operating at low levels.

Looking ahead, the titanium industry chain is expected to continue its structural trends. The supply-demand balance for titanium concentrate is difficult to break in the short term, and prices are likely to remain stable. The titanium dioxide market still faces pressure; domestic high inventory and ample supply issues remain unresolved. Although reliant on external demand support, market expectations are pessimistic, and prices may continue to fluctuate downward. For the titanium slag market, under cost pressure, if the new round of steel tender prices rebounds slightly, it might alleviate some downward pressure, but the fundamentally weak supply and demand situation remains unchanged, and the overall market is still weak. Sponge titanium, affected by contracting civilian demand, may face some downward price pressure, while demand in the high-end sector may continue to support shipments for some enterprises. The divergence in the titanium materials market will persist; demand from military, deep-sea equipment, and other high-end sectors will support related products, while the supply-demand imbalance in the low-end market is difficult to alleviate in the short term, prices still face downward risks, and social inventory may continue to accumulate modestly.