Latest Update in the SMM Titanium Market

In November, the titanium market overall displayed a pattern of both weak supply and demand: upstream titanium concentrate experienced price declines transmitted from downstream, with quotations decreasing by 50-80 yuan/ton month-on-month; midstream titanium dioxide struggled to balance between soaring sulfuric acid costs and insufficient demand, and although companies attempted to support prices, the effectiveness was limited; sponge titanium saw simultaneous contraction in both domestic and international demand, with prices stabilizing weakly and inventory pressure gradually emerging. The contradiction between cost-driven pressures and demand suppression persisted across all segments of the industry chain.

[SMM Titanium Spot Market Update: Sluggish Trading in Sponge Titanium Market, Prices Under Pressure] The sponge titanium market has seen overall sluggish trading recently, with prices failing to meet expectations for an increase. According to SMM data, on November 24, the price for Grade 0 sponge titanium was quoted at 46,000-47,000 yuan/mt, Grade 1 at 45,000-46,000 yuan/mt, and Grade 2 at 44,000-45,000 yuan/mt. Current market supply remains stable, but downstream procurement continues to be primarily driven by rigid demand. Coupled with mediocre performance in the export market in H2 and limited acceptance of high prices among domestic customers, market prices are under pressure and trading in the doldrums. The sponge titanium market is expected to remain in the doldrums in the short term.

[SMM Titanium Weekly Review: Diverging Trends in Upstream and Downstream, Cost and Demand in Continuous Tug-of-War] This week, the titanium industry chain as a whole showed a diverging pattern of "upstream under pressure, downstream stabilizing." Upstream, titanium concentrate prices continued to decline, dragged down by weak demand from titanium dioxide and high sulphuric acid costs, with strong bearish sentiment in the market. The titanium slag market was consolidating at the bottom, facing difficulty in price changes amid weak supply and demand. Midstream, titanium dioxide prices, though in the doldrums, are expected to gradually stabilize due to losses and expectations of supply contraction. Downstream, sponge titanium quotations remained firm, supported by solid high-end demand and cost; titanium materials, however, continued to face downward pressure due to sluggish end-use demand and accumulating social inventory. Overall, the contradiction between high costs and insufficient demand runs through the industry chain, and the short-term market is likely to remain volatile with adjustments.

China's titanium market exhibited a pattern of weak supply and demand in October. Upstream titanium concentrate imports fell 16.22% MoM to 374,800 tonnes, as disappointing "Silver October" demand intensified market competition and put downward pressure on prices. Midstream titanium dioxide exports decreased 6.34% MoM to 146,000 tonnes, constrained by high overseas inventories and insufficient manufacturing momentum. Downstream sponge titanium exports fell sharply by 35.79% MoM to 436 tonnes; although cumulative exports maintained year-on-year growth, the short-term demand slowdown was evident.

[SMM Titanium Spot Report: Titanium Ore Prices Continue to Decline, Market Awaits Demand Guidance] November 18, domestic titanium concentrate prices continued to fall, with the 46% grade quoted at 1,630-1,680 yuan/mt (average 1,655 yuan/mt) and the 47% grade quoted at 1,900-2,050 yuan/mt (average 1,975 yuan/mt). Currently, competition between domestic and imported ore is intensifying, downstream demand remains generally weak, and market wait-and-see sentiment is strong. Most market participants are focusing on the recovery of demand by month-end to seek clearer directional guidance.

[SMM Titanium Weekly Review: Titanium Market Under Pressure Overall This Week, Weak Downstream Demand Constrains Price Recovery] The titanium market remained in the doldrums overall this week, with most varieties under pressure. Prices of titanium concentrate and titanium dioxide continued to decline, primarily constrained by weak downstream demand; titanium slag faced pressure from imported material and cost pressures, making it difficult for prices to move in either direction; although some enterprises attempted to raise sponge titanium prices, transactions remained sluggish, and market sentiment was dominated by a wait-and-see approach; titanium materials, affected by sluggish demand and accumulating social inventory, continued to fluctuate at low levels. Overall, end-use demand showed no signs of improvement, and the titanium product sector as a whole remained in a weak supply-demand balance.

[SMM Titanium Spot Market Update: Sponge Titanium Quotations Rise Amid Strong Downstream Wait-and-See Sentiment, Overall Market Remains Sluggish] On November 10, sponge titanium market prices remained generally stable, with mainstream quotations for Grade 0 at 46,000-48,000 yuan/mt. Downstream purchasing enthusiasm was generally weak. Yunnan Guoti announced a domestic selling price increase of 2,000 yuan/mt and an export quotation increase of $300/mt, making it one of the rare price hike moves in the market. However, downstream acceptance is currently limited, and other mainstream producers have not yet followed suit with price adjustments. Overall market transactions are sluggish, and sentiment remains cautious. In the short term, the sponge titanium market is expected to remain in the doldrums.

In October, the overall titanium market exhibited a pattern of weak supply and demand. Titanium concentrate prices were strong initially but weakened, showing softness in late October; titanium dioxide prices rose then fell, driven mainly by weak domestic demand; sponge titanium faced pressure across all grades, with a noticeable contraction in the civil sector.

[SMM Titanium Weekly Review: Supply-Demand Pattern Dominated the Market, Prices Across the Titanium Industry Chain Diverged Significantly This Week] This week, performance across the domestic titanium industry chain diverged, with price trends showing structural differences. Titanium concentrate prices remained stable, averaging 1,730 yuan/mt for the TiO2≥46% specification and 2,025 yuan/mt for the TiO2≥47% specification, as rigid downstream demand and ample supply formed a weak balance.