SunSirs: October Review and Outlook for China's Titanium Market

According to China Nonferrous Metals News, the domestic titanium ore market remained largely stable in October, with some enterprises slightly raising their quoted prices. With downstream demand remaining persistently low, domestic titanium ore supply showed no significant growth. Processing plants in the Panzhihua region maintained relatively low operating rates. Large mines raised their quotations by 20-30 RMB/ton, while small miners increased theirs by 15-20 RMB/ton. To counter market competition pressures, downstream enterprises adopted a cautious approach toward purchasing high-priced titanium ore, strictly controlling raw material costs.

In October, the imported titanium ore market remained stable. Premium Mozambique titanium ore quotations held steady at $350/ton, Australian titanium ore prices ranged from $300 to $315/ton, Vietnamese titanium ore prices hovered around $300/ton, and 95% rutile prices stood at 6700 to 6800 RMB/ton. From a supply-demand perspective, downstream enterprises strictly controlled titanium ore procurement prices while overseas mines maintained their quoted prices, resulting in stable imported titanium ore prices.

In October, the domestic high-titanium slag market continued its downward trend with prices persistently declining, while the acid slag market remained relatively stable. Specifically, the tender price for 90% low-calcium/magnesium high-titanium slag was CNY 5,440/ton, down CNY 210/ton from September. In Yunnan, the quoted price for 74% acid slag remained at CNY 4,200/ton. Currently, high-titanium slag producers face significant operational pressure. Although acid slag prices remain stable, transaction volumes are extremely low.

In October, domestic sponge titanium prices saw a slight decline, with Grade 1 sponge titanium quoted at 47,000-48,000 RMB/ton. The current oversupply in the sponge titanium market is the primary driver behind its sustained price decline, a trend unlikely to reverse in the short term. The titanium materials market also remains weak, with enterprise order volumes generally shrinking due to insufficient end-user demand. To compete for limited orders, some companies have been forced to adopt low-price strategies, putting downward pressure on overall market prices. Looking ahead, without significant improvement in demand, titanium material prices may continue to face downward pressure.

The titanium dioxide market showed slight improvement in October. Around the National Day holiday, several domestic titanium dioxide producers announced price hikes, driving prices up by approximately RMB 100 per ton. While “Golden September and Silver October” traditionally mark the peak season for the titanium dioxide market, this October saw only modest price gains, with transaction volumes significantly weaker than in previous years. Given the persistent downturn in the real estate market, titanium dioxide prices are expected to continue fluctuating at low levels in the near term.

Market Outlook

With the conclusion of the peak season in downstream markets, demand for titanium ore is expected to gradually decline. Although titanium ore production in China's Panzhihua region has decreased compared to the same period last year, supply from other domestic regions and imported titanium ore remains ample. This will gradually shift the market balance toward buyers, potentially exerting downward pressure on prices.

At the end of October, bidding prices for low-calcium, high-magnesium, high-titanium slag in northern regions increased by 10 RMB/ton, temporarily halting the decline in high-titanium slag prices. Currently, high-titanium slag producers are largely operating at a loss. The 10 RMB/ton increase is merely a drop in the bucket, failing to effectively boost production enthusiasm. Natural rutile, another raw material for the chlorination process, is priced between 5,500 and 5,600 RMB/ton, effectively capping the price ceiling for high-titanium slag.

In October, some domestic enterprises adopted low-price strategies to reduce inventory, alleviating overall sponge titanium stock pressure. However, due to weak demand, overall sponge titanium supply remains in surplus, and prices are expected to remain under pressure going forward. Titanium material prices showed divergent trends: most titanium products remained weak, while a small portion of high-end titanium materials held relatively firm prices.

In November, the titanium dioxide market will enter its off-season, bringing an end to its brief upward cycle. As some downstream enterprises have already completed advance stockpiling, titanium dioxide transaction volumes may decline over the next month, putting downward pressure on prices.

As an integrated internet platform providing benchmark prices, on November 19, the benchmark price of titanium dioxide from SunSirs was 13,500.00 RMB/ton, a decrease of 2.6% compared with the beginning of the month (13,860.00 RMB/ton).

Application of SunSirs Benchmark Pricing：

Traders can price spot and contract transactions based on the pricing principle of agreed markup and pricing formula (Transaction price=SunSirs price + Markup).

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