3 Monthly Titanium Market Review

　　The guided price for the Dachang titanium ore in Panzhihua, Sichuan, remains unchanged. However, companies indicate that the quoted price is also the final transaction price, leaving no room for further negotiation. As a result, the actual transaction prices have slightly increased compared to previous levels. Meanwhile, neighboring mine prices continue to rise, gradually narrowing the gap with the Dachang price. Currently, prices at smaller local mines are concentrated around... 1250 Yuan ~1350 Yuan / Between tons. Currently, supply from Panzhihua Zhongkuang remains tight, and market prices remain firm.

　　As for imported titanium ore, most African titanium ore quotations remained flat month-on-month, while domestic spot prices at ports were concentrated around... 1650 Yuan ~1700 Yuan / Between tons; Vietnam A Mineral prices slightly increased. 30 Yuan ~50 Yuan / Ton.

　　Overall, both transactions and inquiries in the titanium ore market increased month-on-month, yet market prices remained largely unchanged. Since the guided price for domestically produced titanium ore was not raised this month, and companies raising prices on titanium dioxide have not involved major industry players, most ore traders are still adopting a wait-and-see approach, awaiting clearer signals.

　　Titanium slag price and 2 The monthly price remains stable with no adjustments. The market for chloride slag is sluggish, and major downstream enterprises are planning shutdowns for maintenance, leading to insufficient market demand and naturally preventing prices from rising. The market for acid slag, on the other hand, is relatively robust, with titanium slag plants enjoying a steady stream of orders. However, considering... 2 The price was adjusted only at the end of the month, and raw material costs remain unchanged; therefore, in... 3 The moon did not continue to raise prices. 3 At the end of the month, domestic titanium tetrachloride prices rose significantly, with an increase approaching... 10% The primary reason for the recent rise in titanium tetrachloride prices is that major enterprises have suspended production for maintenance, leading to a relatively tight market supply.

　　3 In the past month, the sponge titanium market has seen two consecutive price increases within a short period—a phenomenon that has been rare in recent years. In less than... 10 Within a single day, the price of sponge titanium was raised twice in succession. Last week, some companies raised their product quotes to... 5.5 Ten thousand ~5.6 Ten thousand yuan / After the ton, the quote for sponge titanium subsequently rose again to 6 Ten thousand yuan / tons. However, while prices have been rising rapidly, we’ve also observed that total demand for sponge titanium has not changed significantly, and market transactions remain relatively stable. The logic behind this round of price increases in sponge titanium is clearly not driven by demand or an imbalance between supply and demand—but rather by rising costs.

　　Looking at the raw material prices for sponge titanium, the price of magnesium ingots has risen by approximately... 300 Yuan / Tons—prices for titanium tetrachloride have fluctuated in some regions. Currently, the changes in the prices of these two raw materials are clearly insufficient to drive up the price of sponge titanium. 5000 Yuan / A significant price increase has been observed. With tight inventory levels, the expectation of rising raw material prices in the future may be the primary driver behind this round of titanium sponge price hikes. Although the price of titanium tetrachloride has remained relatively stable so far, the upcoming maintenance shutdowns at major titanium tetrachloride producers could tighten supply, potentially pushing up the price of titanium tetrachloride—though the exact magnitude of the increase remains uncertain. Currently, most titanium sponge manufacturers have low inventory levels. Given the imminent rise in raw material costs, continuing to sign contracts at previous prices could expose these companies to substantial operational risks. Should raw material prices surge dramatically, the resulting increase in production costs would have to be absorbed entirely by the titanium sponge manufacturers themselves. Therefore, it is understandable that titanium sponge companies are now taking the lead in raising prices, thereby building up a buffer to better withstand future increases in raw material costs.

　　Based on feedback from downstream markets, many titanium material companies still hold certain inventories of sponge titanium and are not planning to purchase additional sponge titanium in the short term, which will not affect their normal production. It is expected that in the future, transactions in the sponge titanium market will mainly consist of small volumes driven by immediate demand, and downstream companies may reduce their procurement efforts and shift toward digesting existing inventories.

　　Enter 3 After the month, several domestic titanium dioxide manufacturers continued to announce price increases for their products. Among those announcing price hikes, companies based in southern China have been more active, while leading enterprises in northern China have yet to make any announcements. Moreover, since the northern market has not fully recovered from the impact of weaker demand during the winter, overall willingness among northern companies to raise prices is not as strong as that of their southern counterparts. It is expected that this situation will gradually improve once the heating season comes to an end.

　　The sponge titanium market is entering another expansion phase.

　　After undergoing the market’s trials in previous years, China’s sponge titanium industry has seen its overcapacity situation eased. Over the past two years, the overall operating rate of China’s sponge titanium industry has gradually recovered to... 75% Above all, the number of enterprises has decreased from the previous two dozen or so to just over ten; product prices have also shown a phased recovery, and the business environment for enterprises has clearly improved. 2013 Year ~2015 Year.

　　After the waves of market turbulence have washed away the weaker players, the titanium sponge industry has seen a significant increase in concentration, with the top five companies accounting for a substantial share of the country’s total output. 80% The above is the context. Against this backdrop, the sponge titanium industry has once again shown signs of expansion. After listing the specific companies planning to expand, we can see that these expanding entities fall into two main categories: One group consists of China’s leading sponge titanium enterprises, which are aiming to increase production by restarting idle facilities or adding new production units; the other group comprises companies that previously... “ Outsider ” The newly invested factories, once completed, will inevitably expand China's capacity for sponge titanium.

　　Over the past two years, China’s demand for sponge titanium has been steadily growing. Among these, the aerospace industry has shown the most significant increase in demand for sponge titanium. However, the production expansion in the sponge titanium industry has been even more rapid, which could once again plunge the industry into a sales dilemma. From the supply-side perspective, the total planned expansion scale of existing companies exceeds... 2 Ten thousand tons / year, and the scale of each new project is also... 2 Ten thousand tons / Above the year. That is to say, in the future 2 By mid-year, China's sponge titanium production capacity may once again return to its peak levels. 13 Ten thousand tons / Years—even higher. Although China’s demand for sponge titanium has been rising slightly each year, it clearly cannot accommodate such a massive increase in supply. By then, the market will face a new round of competition and reshuffling. Under the harsh laws of the marketplace, some companies will inevitably fall by the wayside; while those with technological advantages and stronger profitability may well hold out until the end. However, during this period of market adjustment and elimination, all companies will inevitably experience another bout of pain. Price wars, zero profits, and even operating at a loss will once again loom large before every enterprise. It is hoped that after this painful phase, the sponge titanium industry will undergo a complete transformation—having paid its dues in the grand classroom of the market, it will emerge with real gains and newfound strength.