Corporate News

Last week, the titanium metal market presented a dual pattern of "strong military industry and weak civilian sector". On one hand, there was a shortage of aviation-grade titanium alloys; on the other hand, chemical titanium plates hit rock bottom. The contradiction between industrial upgrading and overcapacity collided fiercely on the price curve. After another rise, the transaction price of sponge titanium stably broke through the key level of 51,000 yuan per ton, leaving 50,000 yuan under its feet. In contrast, the prices of titanium materials used in the chemical industry are under pressure due to the weak demand from downstream sectors such as PTA.

1. Sponge titanium: Three consecutive rises within the year, supported by military orders

Yunnan Guotai announced on June 11th that it would raise the price of sponge titanium. For domestic customers, the price would increase by 2,000 yuan per ton, and for international customers, it would rise by 300 US dollars per ton. This is the third price adjustment this year, with a cumulative increase of over 5,000 yuan per ton within the year.

Price range: The transaction price of grade 1 product remains stable at 51,000 yuan per ton, while the high-end quotation of Grade 0 product has reached 53,000 yuan per ton. The spot supply remains tight.

Order support: Orders in the military industry increased by 32% year-on-year. The gap in aviation-grade sponge titanium has widened. Enterprises have scheduled production of orders until late July, and the proportion of exports has risen to 35%.

The price of TA2 ingots rose by 1.2% for the week, increasing by 3,000 yuan per ton. There is a rush to secure orders for large-sized ingots used in ships. The price of thick chemical plates has dropped below 60,000 yuan per ton, and the transaction price of some hot-rolled plates has reached the cost critical point of 59,500 yuan per ton.

High-end foil material mass production breakthrough: Baoji Titanium Valley's 0.02mm ultra-thin titanium strip (width 670mm) has been put into operation, filling the domestic gap. It is mainly used in the C919 avionics system, with the price remaining at a high level of 120,000 yuan per ton. The weekly transaction volume of large-diameter titanium tubes for nuclear power has soared, and the demand in the hydrogen energy sector has increased by 45% year-on-year. The transaction price of ordinary industrial welded pipes is 120,000 yuan per ton. The delay of downstream chemical projects has led to a contraction in demand. The quotation of 3D printing titanium powder has jumped by 5%, and a large order of 5 tons of Ti-5553 alloy powder for medical implants has emerged, offsetting the weakness.

Ii. Major Events of Last Week

Breakthrough in the domestic production of high-end titanium materials: Four departments have issued the "Application and Promotion Plan for High-End Titanium Materials", requiring that the domestic production rate of aviation titanium materials reach 75% by 2025, and Baoji Titanium Valley achieve mass production of 0.02mm ultra-thin titanium foil.

Jinpu Titanium Industry's subsidiary has suspended production for maintenance: Due to the price of titanium dioxide falling below the cost line (dropping by more than 10% within the year), Xuzhou Titanium Dioxide has temporarily suspended production for two months, with an estimated reduction of 25,000 tons in output.

The price of sponge titanium remains at a high level. Enterprises are exporting in large quantities. Coupled with the resilience of military orders, the tight spot situation continues. It is still difficult for small and medium-sized enterprises to purchase sponge titanium. The inventory turnover days of chemical-grade titanium plates have risen to 60 days. Some manufacturers may reduce prices to clear their inventories, and the price has dropped to 59,000 yuan per ton.

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Yunnan Guotai leads the price increase! Sponge titanium has risen for three consecutive years within the year, and the sharp increase in high-end demand has driven a market worth hundreds of billions

Market quotation of Titanium Series products on June 13th: Sponge titanium

Mysteel Weekly Report: The upstream titanium market is weak, while the downstream market is holding prices and cautiously Observing (June 6th - June 13th)

Titanium Alloy Observation: The price of sponge titanium has risen for three consecutive times. Tariff disturbances and the EU's increased defense spending may further drive up the global price of sponge titanium.