Titanium Industry Chain Maintained Weak Stability This Week, Upstream and Downstream Showed Structural Divergence [SMM Titanium Weekly Review]

Titanium Concentrate

This week, mainstream quotations for domestic titanium concentrate (TiO2≥46%) were 1,580-1,630 yuan/mt, averaging 1,605 yuan/mt; for the TiO2≥47% specification, quotations were 1,900-2,050 yuan/mt, averaging 1,975 yuan/mt.

The titanium concentrate market overall continued a stable pattern. Entering January, major mines in Panzhihua raised quotations slightly, but small and medium-sized mines and those in Yunnan and Hebei maintained stable prices. Operating rates in the downstream titanium dioxide industry were slightly insufficient, overall demand was soft, and purchasing attitudes towards titanium concentrate were cautious, leading to a lack of strong upward momentum despite some price adjustments. For imported ore, the market remained in the doldrums, with no significant price fluctuations.

Titanium Dioxide

This week, domestic titanium dioxide market prices were: anatase titanium dioxide quoted at 12,100-12,500 yuan/mt, averaging 12,300 yuan/mt; rutile titanium dioxide quoted at 12,800-14,200 yuan/mt, averaging 13,300 yuan/mt; and chloride process titanium dioxide quoted at 13,600-17,000 yuan/mt domestically, averaging 15,300 yuan/mt.

The titanium dioxide market overall maintained high quotations this week. Entering January, some producers gradually scheduled maintenance, slowing the market supply pace. The industry currently primarily focuses on fulfilling previous orders, and expectations for further price declines weakened. Additionally, sulphuric acid prices stabilized and pulled back slightly this month, alleviating cost-side pressure to some extent. Approaching the Chinese New Year, signs of pre-holiday stockpiling emerged in the end-use market, expected to release some rigid procurement demand, supporting titanium dioxide prices. Overall, the titanium dioxide market is expected to remain stable. Reportedly, leading enterprises intend to issue another price increase letter to further stabilize the market trend.

Titanium Slag

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

This week, the tender price for 90 low-calcium magnesium high-titanium slag from an enterprise in the north was 5,400 yuan/mt for January, flat MoM. Affected by high raw material costs, titanium slag producers are generally operating at a loss, and operating rates remain low. Under the dual effects of cost support and weak demand, the titanium slag market overall is in the doldrums in the short term.

Sponge Titanium

This week, Grade 0 sponge titanium was quoted at 46,000-47,000 yuan/mt, averaging 46,500 yuan/mt; the average FOB price for Grade 0 sponge titanium was $6,950/mt; Grade 1 sponge titanium was quoted at 45,000-46,000 yuan/mt, averaging 45,500 yuan/mt; Grade 2 sponge titanium was quoted at 44,000-45,000 yuan/mt, averaging 44,500 yuan/mt.

Post-holiday, sponge titanium market prices continued to decline. Current factory inventories in the civilian sector are high, coupled with weak downstream titanium material demand, with actual transaction prices for Grade 0 products generally in the range of 44,000-45,000 yuan/mt. To boost market confidence, some enterprises issued price adjustment letters on January 9, announcing a price increase of 2,000 yuan/mt in an attempt to alleviate the decline. Entering this week, the market did not continue to rebound, overall returning to a weak consolidation pattern, with offers retreating by about 1,000 yuan/mt from the post-increase level. Sponge titanium prices are expected to maintain a fluctuating trend this month, and subsequent trends still depend on whether there is a substantial improvement in end-use demand for titanium materials after the Chinese New Year.

Titanium Materials

This week, the price of TA1 titanium ingot was 55-56 yuan/kg, TA2 titanium ingot was 54-55 yuan/kg, and TC4 was 62-63 yuan/kg. This week, the offer for hot-rolled titanium plate (3-8mm) was 64-65 yuan/kg, titanium welded tube was 115-125 yuan/kg, pure titanium rod was 100-105 yuan/kg, and pure alloy rod was 115-125 yuan/kg.

The titanium ingot and titanium material market overall maintained a supply-demand balance, with operations stable. Supported by cost side, prices for some titanium products saw slight increases, and they are expected to remain firm under the support of raw material prices. Demand in the high-end sector performed strongly, with robust procurement of high-end sponge titanium for aerospace indirectly boosting demand for aerospace-grade titanium ingots. Among these, the price of TC4 titanium alloy casting ingot saw a slight rise, while demand for common pure titanium casting ingot was stable. Although the rise in sponge titanium prices created some cost pressure on the downstream, factors such as weak demand for civilian titanium materials and year-end inventory clearance constrained the overall increase. Overall, the titanium ingot and titanium material market showed structural differentiation, with high-end products stable to slightly higher and common products mainly stable.

Weekly Summary

This week, the titanium industry chain overall presented a pattern of upstream stabilization and mid-downstream structural differentiation. Upstream titanium concentrate prices increased slightly in main production areas, but weak downstream demand suppressed the overall upward trend; the midstream titanium dioxide market operated at highs, supported by eased cost pressure and pre-holiday stockpiling expectations; titanium slag enterprises generally faced losses, with operating rates low; sponge titanium prices weakened and corrected, with inventory pressure still existing; downstream, the titanium material market, supported by costs, saw firm demand and slight price increases in high-end sectors (e.g., aerospace-grade ingot), while weak civilian demand constrained increases for common materials, maintaining an overall weak supply-demand balance.