Upstream and Downstream Trends Diverge, Costs and Demand Continue to Compete [SMM Titanium Weekly Review]

Titanium Concentrate

This week, mainstream quotations for domestic titanium concentrate (TiO2≥46%) were yuan 1,630-1,680/mt, averaging yuan 1,655/mt, while the TiO2≥47% specification was quoted at yuan 1,900-2,050/mt, averaging yuan 1,975/mt.

Titanium concentrate prices continued their downward trend this week, remaining under pressure. This was mainly due to the dual impact of weak demand from the downstream titanium dioxide market and high sulphuric acid prices, leading purchasers to generally intensify cost compression efforts on the ore side. Concurrently, overall industry demand contracted, and competition in the imported ore market intensified, further driving prices lower. Prices are expected to remain under downward pressure in the absence of significant demand improvement.

Titanium Dioxide

This week, domestic titanium dioxide prices were as follows: anatase titanium dioxide was quoted at yuan 11,800-12,200/mt, averaging yuan 12,000/mt; rutile titanium dioxide was quoted at yuan 12,300-13,300/mt, averaging yuan 12,800/mt; and chloride process titanium dioxide domestic quotations were yuan 14,000-16,000/mt, averaging yuan 15,000/mt.

Titanium dioxide prices remained in the doldrums this week. Persistently high sulphuric acid prices meant the industry generally faced losses, increasing resistance to further price declines. Although there were still no signs of recovery on the demand side, mainstream producer inventory levels were generally controllable. Coupled with market rumors that the industry plans to adjust supply through production halts and maintenance, prices are expected to gradually stop falling and may subsequently lead to slight increases in quotations.

Titanium Slag

This week, acid-soluble titanium slag (Sichuan) was quoted at yuan 5,820-5,845/mt; mainstream quotations for standard 90 titanium slag were yuan 5,200-5,400/mt.

Recently, the high titanium slag market has been consolidating at the bottom, with current prices under pressure. Titanium slag enterprises maintained low operating rates. Considering weak downstream demand is unlikely to support a rebound in titanium slag prices, prices are expected to continue consolidating at low levels. For acid slag, the approaching dry season is expected to increase electricity costs, thereby raising production pressure. Overall, with both supply and demand under pressure, titanium slag prices face difficulty moving significantly in either direction.

Sponge Titanium

This week, Grade 0 sponge titanium was quoted at yuan 46,500-48,500/mt, averaging yuan 47,500/mt; the FOB average price for Grade 0 sponge titanium was $6,650/mt; Grade 1 sponge titanium was quoted at yuan 45,500-47,500/mt, averaging yuan 46,500/mt; Grade 2 sponge titanium was quoted at yuan 44,500-46,500/mt, averaging yuan 45,500/mt.

Sponge titanium market quotations held firm this week, with overall operation stable. The market is currently supported by robust demand from high-end sectors and strong raw material cost support. Furthermore, the industry's overall operating rate remained normal, further consolidating the stable price environment.

Titanium Materials

This week, TA1 titanium ingot price was 54-55 yuan/kg, TA2 titanium ingot price was 53-54 yuan/kg, and TC4 price was 61-63 yuan/kg. This week, the quoted price for hot-rolled titanium plate (3-8mm) was 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.

The titanium metal market remained under pressure this week, continuing to trade in the doldrums. Although upstream raw material prices edged up slightly, titanium metal market quotations have not yet adjusted in sync. Current downstream procurement demand remains sluggish, and the supply-demand imbalance is unlikely to improve in the short term. Coupled with a slight accumulation in social inventory, enterprise quotations have shown minor loosening, with the overall market still facing some downward pressure.

This Week's Summary

This week, the titanium industry chain overall displayed a divergent pattern characterized by "upstream under pressure, downstream stabilizing." Upstream titanium concentrate prices extended their decline, weighed down by weak titanium dioxide demand and high sulphuric acid costs, resulting in strong bearish sentiment in the market. The titanium slag market consolidated at the bottom, with prices caught between gains and losses amid weak supply and demand. In the midstream, titanium dioxide prices, though still in the doldrums, are expected to gradually stabilize amid expectations of cost-induced losses and supply contraction. Downstream, sponge titanium quotations remained firm, supported by solid high-end demand and cost underpinnings; titanium materials, however, constrained by sluggish end-use demand and accumulating social inventory, still face downward price pressure. Overall, the contradiction between high costs and insufficient demand persists throughout the industry chain, and the short-term market is expected to remain dominated by volatile adjustments.