The Domestic Titanium Sponge Price Fell Again to a Nearly Five-year Low

The Domestic Titanium Sponge Price Fell Again to a Nearly Five-year Low

Foreword: As an important material, titanium sponge has a wide range of applications and growing market demand in the domestic and global market, and the continuous upgrading of cutting-edge technology in the titanium industry will greatly promote the development of the titanium sponge market.

With the continuous development of China's titanium sponge industry, with the gradual implementation of industrial policies, the market demand for titanium sponge has maintained a good growth trend. The overall trend of China's titanium sponge market production capacity has continued to expand in the past ten years, and the production capacity of titanium sponge industry has shown a downward trend from 2015 to 2017, and then the market production capacity has maintained continuous growth since 2018, with a production capacity of 150,000 tons in 2014 and 300,000 tons in 2023, with a production capacity growth rate of 101%; From 2022 to 2023, the production capacity growth rate of the titanium sponge market will also be fast, with the annual production capacity growth rate of the industry exceeding 20%, while the terminal demand has declined. In 2023, the oversupply of titanium sponge market will gradually appear, and the market price will begin to fall all the way.

Affected by the downturn in the terminal chemical industry, the demand for titanium sponge has declined sharply, coupled with the increase in supply this year, the competitive pressure of market enterprises is greater, and the price of titanium sponge has been falling since the beginning of the year, and the market price has fallen rapidly after June. Up to now, the transaction price of grade 1 titanium sponge on the market is 48,000-50,000 yuan/ton, and the market also has an extremely lower price. The market price is more chaotic. At this year, the price of titanium sponge has fallen all the way to a five-year low, the price since the beginning of the year has fallen by about 25,000 yuan/ton, a decline of 33%.

According to Tuduoduo, China's titanium sponge output has also begun to fall since June. In July 2023, China's titanium sponge output was 17,250 tons, a year-on-year increase of 13.64%, a month-on-month decrease of 4.70%; From January to July 2023, the cumulative output of titanium sponge in China was 127,200 tons, an increase of 51.34% year-on-year, and the market supply increased significantly.

The situation of different enterprises is different, and the regional output growth is different, of which the largest increase area is Yunnan (Yunnan National Titanium), the output growth rate is of 104%, followed by Liaoning, the output growth is of 101%, and the largest increase enterprise in output in Liaoning province is Jinda Group. Most sponge titanium enterprises have a large increase in output this year compared with last year.

According to Tuduoduo, from January to June, China's apparent consumption of titanium sponge was 107,500 tons, an increase of 15% over the same period last year, and the consumption increased at 13,700 tons. With the weakening of the market, the consumption of titanium sponge is also gradually declining; The recovery of domestic demand is relatively slow, and the downstream titanium export orders have also been greatly affected, the actual consumption has declined. The inventory of titanium sponge manufacturers has increased one after another; There are no new projects in the military market, the demand for civilian market is weak, and the pressure on titanium sponge selling is greater.

The cost price of raw materials is high, and the market price of titanium sponge is low, so the enterprises has been lost. The production pressure of manufacturers is greater. If the output of titanium sponge continues to maintain a high level, the market price pressure is still large, and the output of titanium sponge enterprises may decline again.