This week has been a black week for sponge titanium, as the sponge titanium market has once again declined. The sales price of grade 0 sponge titanium has fallen below 45000/ton, reaching a new historical low in recent years. This phenomenon is mainly due to the sustained market downturn, stagnant procurement in some military industries, and the continuous weakening of domestic industries, resulting in the first significant decline in titanium material usage in recent years. However, the expansion of sponge titanium production capacity has not stopped. After rapid and continuous expansion in recent years, China's sponge titanium production capacity and output have jumped to the world's first place. The production capacity of the top three domestic enterprises alone is close to 200000 tons. The continuous decrease in downstream demand and the increase in sponge titanium production capacity have formed a serious supply and sales contradiction. In addition, the continuous decline in production raw materials such as titanium ore, magnesium metal, and chlorine gas has also triggered the current round of sponge titanium price decline.
According to internal personnel of some sponge titanium production enterprises, the inventory pressure of various production enterprises continues to increase, and production cannot be stopped. The accumulated inventory of several major production enterprises has reached nearly 50000 tons. In order to alleviate inventory pressure, the production company has directly lowered the sales price of sponge titanium to 45000 yuan/ton and promised to have some bargaining space for enterprises with demand. This price has reached below the cost line for enterprises without titanium ore resources. If the price continues to decline, there is a risk of production stoppage.
From the market response, sales of sponge titanium are still relatively difficult. Some major domestic titanium production enterprises have not purchased sponge titanium for two consecutive months, which has further increased the inventory of sponge titanium production enterprises. Faced with the terrifying market competition and huge inventory pressure, sales personnel from sponge titanium production enterprises gathered in titanium production sites such as Baoji, visiting each enterprise with utmost sincerity and willingness to purchase sponge titanium. However, due to the continuous decrease in downstream demand, the purchasing willingness of enterprises is not strong, and they are waiting for prices to continue to fall.
Overall, the sponge titanium market is currently in a state of oversupply, and it is urgent for production companies to shut down, reduce production, and control production capacity. The price is transmitted to the downstream titanium material market, exacerbating the internal competition of titanium materials and further increasing market risks.
This week, the titanium material market continued to be sluggish, with smelting and processing companies reducing their production shifts and significantly lowering processing costs. Some companies stopped production for equipment maintenance. The workload of forging processing enterprises has decreased by more than 30%, with orders being rolled up and equipment utilization being insufficient.
The specific performance of the domestic titanium material market this week is as follows:
Sponge titanium: The inventory of production enterprises continues to increase, and there has been no significant increase in market sales. The transaction price for grade 0 products is around 45000 yuan/ton.
Titanium ingots: Processing costs have been significantly reduced, and production companies have reduced or stopped production. The quotation for pure titanium ingots is around 52000 to 55000 yuan/ton, while the quotation for TC4 titanium alloy ingots remains around 58000 to 60000 yuan/ton.
Titanium scrap: difficult sales, large supply, and declining prices. The quotations for pure titanium scrap and TC4 alloy scrap are approximately 25000 yuan and 22000 yuan per ton, respectively.
Titanium slab: Enterprises reduce production, demand decreases, and prices fall. The market price of pure titanium slab ranges from 58000 yuan to 60000 yuan per ton, and there are sufficient spot resources in the market.
Titanium hot-rolled plate (coil): Demand has decreased and prices have fallen. The quotation for pure titanium hot-rolled coils is 65000 to 73000 yuan per ton; The quotation for pure titanium hot-rolled plate is approximately 68000 to 75000 yuan per ton.
Titanium rod and wire: Market demand has decreased, but prices remain stable. Pure titanium rods cost 120000 to 140000 yuan per ton, while titanium alloy rods are priced at 180000 to 220000 yuan per ton. The quotation for pure titanium wire with a diameter of 2 to 4 millimeters is approximately 140 to 160 yuan per kilogram.
Titanium pipes: The market is sluggish and prices are falling, with prices remaining between 115000 yuan and 120000 yuan per ton.
Titanium alloy: With a decrease in market demand, prices have slightly decreased, and the changes in different alloys are slightly different.
