Sponge Titanium Fell Below 60,000, And The Titanium Market Followed Suit

Since the second quarter of this year, the titanium consumption market at home and abroad has entered the off-season, and the demand has decreased significantly. According to the data obtained by Baoji Titanium Industry Research Institute staff who went to the enterprise to investigate, titanium material production enterprises have entered a very difficult period. Except for some state-owned backbone enterprises relying on the support of the military industry market, the order volume of small and medium-sized titanium enterprises has dropped by 30-40% compared with last year.

Recently, the domestic sponge titanium market has been affected by the decrease in demand, and the market sales price has been falling all the way. Grade 1 sponge titanium has dropped below 60,000 yuan, and the sales price of some sponge titanium enterprises is approaching 50,000 yuan. The sharp drop in the market price of sponge titanium has also caused a continuous decline in the market price of titanium materials, especially the market price of titanium ingots has dropped by more than 10%, and more companies have stopped quoting. It will take some time for the price to be fully transmitted.

1. Titanium sponge is weak and stable

This week, the transactions in the sponge titanium market are relatively stable, and the transaction volume is insufficient. The market is still waiting to see the price reduction of sponge titanium. The transaction price of grade 1 titanium sponge market has fallen below 60,000 yuan, the highest remained at 58,000 yuan/ton, and the sales price of some enterprises was even lower. The cumulative decline of titanium sponge has exceeded 19% this year. It is expected that the titanium sponge market will be weak in the near future, and there is still room for a certain decline.

2. Titanium ingots fall rapidly with sponge titanium

This week, the price of titanium ingots fell rapidly due to the price of titanium sponge, a raw material, and the drop has exceeded 10%. Most enterprises have stopped quoting externally. The situation of titanium alloy ingots is slightly better than that of pure titanium ingots, and the decline is far lower than that of pure titanium.

3. The demand for wide titanium plate and titanium coil decreases and the price drops slightly

This week, the market for wide titanium plates and coils is relatively stable, and the demand remains at a relatively low level compared with last year. Although the market demand is not strong enough, because the production and supply are in the hands of a few large steel mills, the market price has not fluctuated greatly, but only fine-tuned.

4. Demand for titanium rods and wires has declined and prices have remained stable

This week, the market demand for titanium rods and wires has declined, orders from some companies have dropped by 30%, and many companies have started weekends to reduce personnel expenditures. However, due to the long production cycle of titanium rods and wires, the sponge titanium required for the current production of products is purchased at an earlier stage, and it is difficult for enterprises to maintain capital or operate at a small loss, and it is difficult to reduce prices.

This week, the titanium material market is dominated by a weak market, the overall demand weakens, and the price declines to a certain extent. It is expected that the titanium market will still be dominated by weakness in the second half of the year, and the improvement of the current pattern needs to rely on the improvement of the overall international and domestic economic situation.