Supply-Demand Imbalance in the Titanium Market (Updated 6th June 2024)

Brief of the China Titanium Market

Supply-Demand Imbalance:

• The titanium market faces a supply-demand imbalance, putting sponge titanium prices in a dilemma.

Production Records:

• Domestic sponge titanium production has set a new record.
• Total domestic production exceeded 100,000 tons from January to May.
• One company achieved an annual capacity of 80,000 tons, making it the world’s largest sponge titanium producer.
• In May, domestic sponge titanium production exceeded 23,000 tons, a 25% month-on-month increase.

Demand Mismatch:

• Despite significant production increases, downstream demand has not kept pace.
• Economic conditions have slowed growth in some traditional application fields.
• The military sector has also seen a decline in growth.
• This has led to a mismatch between raw material supply and demand.

Price Adjustments:

Since May, the titanium price of ore and magnesium ingots has continued to fall, providing room for adjustments in sponge titanium prices.

Sponge titanium producers face a difficult situation:

• Market mentality prefers buying on a rise, not on a fall, making price reductions less effective in attracting buyers.
• Increasing domestic inflation pressure and potential further depreciation of the renminbi complicate decision-making.

Production companies are experiencing:

• Inventory backlogs
• Difficulty selling high-priced products
• Increased discounts for large customers

Future Price Trends:

• The future trend of sponge titanium prices requires further monitoring of market dynamics.

Stable Demand for Titanium Materials:

• Demand in the titanium materials market remains stable.
• Rapid growth in demand for టైటానియం మిశ్రమం bars మరియు wires in the 3C electronics industry.
• Expansion of the export market has brought new vitality to the market.

The Titanium Price in China Market for Reference (6th June 2024)