China's Sponge Titanium Output Rises, Prices Drop Amid Weak Demand and High Inventories

[SMM Titanium Flash] SMM, July 31 — In July 2026, China's titanium dioxide production was 338,700 mt, down 1.59% MoM but up 1.50% YoY, with cumulative production down 5.74% YoY, and July production edged down. On the inventory side, producer inventories reached 306,800 mt in July, up 23.26% MoM but down 22.01% YoY. Sluggish demand from downstream coatings, plastics and other industries led to high inventories at enterprises. To ease inventory pressure, small and medium-sized producers took the lead in cutting prices to sell. Falling prices combined with cost pressure deepened enterprises' losses, eventually leading to production cuts and shutdowns at some enterprises, with the industry operating rate edging down slightly.

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[SMM Titanium Flash] SMM, July 31: Recently, titanium concentrate prices have continued to weaken, with titanium concentrate (TiO2≥46%) prices down to 1,280-1,330 yuan/mt and titanium concentrate (TiO2≥47%) down to 1,550-1,650 yuan/mt. In H1 2026, China's cumulative imports of titanium concentrates reached 2.9288 million mt, up 13.56% YoY, marking significant import growth. Meanwhile, domestic ore capacity in regions such as Xinjiang and Chengde was also being released with incremental growth, further exacerbating the market oversupply. On the demand side, the titanium dioxide industry is in the off-season, coupled with persistently falling TiO2 prices. Some enterprises have suspended or cut production and are pushing for lower raw material prices, weighing on market sentiment for upstream titanium concentrates. Overall, the strong supply and weak demand pattern is unlikely to change in the short term, and imported titanium concentrate prices are expected to remain under pressure.