Titanium Market Begins to Recover, Material Development Focused on Southwest (십월 2024)

Baoji China report

최근에, under the stimulus of intensive economic and development policies from national and local governments, the domestic 티타늄 시장 has begun to show signs of recovery. Demand orders have increased, but competition among enterprises has intensified, leading to a significant decline in profits. Some companies report that this year’s profit margins for titanium materials have decreased by 30% 에게 50% compared to previous years, with most contracts hovering around the cost line, increasing survival pressure on companies.

At the same time, the Southwest region has emerged as a new hub for the development of titanium materials. To survive in this complex market environment, companies need to reduce production costs and be close to the market. The unique advantages of the Southwest region are becoming increasingly prominent. This region includes areas such as Xichang in Sichuan, Panzhihua, and Chuxiong in Yunnan, which are rich in titanium ore resources and have sufficient raw material supply. The region already possesses a production capacity of 70,000 tons of 스폰지 티타늄, accounting for 30% of the country’s sponge titanium output. A 60,000-ton sponge titanium production line is under construction, which will increase the region’s capacity to 150,000 톤, making it the largest sponge titanium production base in the world.

The abundant hydroelectric resources in this region provide an effective way to reduce costs and enhance competitiveness for the energy-intensive upstream processes of the titanium industry (스폰지 티타늄, smelting, forging). 추가적으로, the continued attention and support from local governments for the development of the titanium industry in recent years have led many leading domestic titanium enterprises to invest in the Southwest region. Besides investing in sponge titanium, there is also a focus on forming new smelting and forging industrial clusters to lay the groundwork for future development. Based on electricity cost comparisons, the titanium smelting cost in the Southwest region is expected to be more than 30% lower than in Baoji, saving smelting fees of 1,500 에게 2,500 yuan per ton, significantly improving market competitiveness. It is expected that within the next three years, the Southwest region will develop manufacturing capacities of 60,000 tons for smelting and 40,000 tons for titanium-processed materials, becoming an important area in the domestic titanium materials manufacturing sector, thereby altering the competitive landscape of domestic titanium materials.

In the past week, although the market showed signs of recovery, overall demand remains weak. Observations suggest that this weak market trend is likely to continue for an extended period. As the end of the year approaches, some companies with weak financial strength or heavy debt burdens may struggle to survive this challenging period and could find themselves in trouble before the arrival of spring next year. We should maintain a cautious and observant attitude toward the future direction of the titanium market.

This week’s changes in the domestic titanium materials market are as follows:

• 스폰지 티타늄: Production companies have steady sales, but inventory pressure remains high. The price for Grade 0 products is around 44,000 에게 45,000 yuan per ton.
• Titanium Ingots: Demand for large-tonnage ingots remains stable, while demand for small-tonnage cast iron has significantly increased. The price for pure titanium ingots is around 52,000 에게 54,000 yuan per ton, and the price for TC4 티타늄 합금 ingots remains around 58,000 에게 60,000 yuan per ton.
• Titanium Scrap: Mainly for self-use by companies, market demand is low. The price for pure titanium scrap and TC4 alloy scrap is approximately 25,000 그리고 22,000 yuan per ton, respectively.
• Titanium Billets: Order volume is low, but prices remain stable. The market price for pure titanium billets is between 58,000 그리고 60,000 yuan per ton, with ample spot resources available.
• Titanium Hot Rolled Sheets (Coils): Sales are stable, and prices remain unchanged. The price for pure titanium hot rolled coils is 65,000 에게 68,000 yuan per ton; pure titanium hot rolled sheets are around 63,000 에게 65,000 yuan per ton.
• Titanium Bars 그리고 Wires: Sales show stable growth, with prices remaining steady. Pure titanium bars are priced between 120,000 그리고 140,000 yuan per ton, while titanium alloy bars are priced between 180,000 그리고 220,000 yuan per ton. Prices for pure titanium wires (φ2 to φ4 mm) are approximately 140 에게 160 yuan per kg.
• Titanium Pipes: The market is stable, with prices unchanged. Sales of seamless pipes are better than welded pipes, with prices maintained between 115,000 그리고 120,000 yuan per ton.
• 티타늄 합금: Demand and prices remain stable, with slight variations in different alloys; prices for TC4 aluminum-vanadium alloys have decreased.
• Intermediate Alloys: Prices for aluminum-vanadium intermediate alloys remain stable, with vanadium prices holding at 135,000 에게 137,000 yuan.