September 28, 2024 – The Chinese titanium market exhibited persistent weakness in the third quarter of 2024, with titanium product prices generally declining amidst the slow macroeconomic recovery and sluggish end-demand. Elevated raw material costs have plunged titanium slag and sponge titanium production into a loss-making predicament. Despite the arrival of the traditionally busy “Golden September,” market response remained lukewarm, with an overall downward trend prevailing.
In the realm of the titanium ore market, price movements were notably volatile during the third quarter. Taking the Panxi region as an example, prices for titanium ore from small and medium-sized factories initially rose and then fell, ending the quarter roughly on par with the start. Meanwhile, prices for 38% titanium medium ore experienced a slight uptick. According to insights from ColorMasterbatchIndustry.com, this was primarily attributed to Panzhihua Steel’s restriction on raw ore exports, leading to market supply tightness. Coupled with the resumption of operations in the titanium dioxide industry, this drove a短暂 rebound in titanium ore prices. However, as September rolled in, downstream cost pressures mounted, causing procurement to become cautious and resulting in a loosening of titanium ore market prices, with an overall downward trajectory. The imported titanium ore market likewise encountered pressures, yet mainstream imported ore prices remained relatively resilient due to high operating rates in the downstream titanium dioxide and sponge titanium sectors, leading to an overall tight supply of titanium raw materials.
Regarding import and export data, China’s titanium ore imports notably increased by 25.10% year-on-year in July-August 2024, with an estimated total import volume of around 1.5 million tons for the third quarter. On the export front, titanium ore exports also surged, up 268.07% year-on-year. For the titanium dioxide market, prices steadily declined in the third quarter, with notable drops influenced by weak end-demand. In terms of production, although some enterprises reduced or halted production in July, output gradually increased in August-September as the market recovered, with an estimated total production of about 1.21 million tons for the quarter. Concerning imports and exports, titanium dioxide imports declined, while exports maintained growth, particularly with significant increases in exports to countries such as India and Brazil.
Looking ahead, titanium ore prices are expected to remain high, but the downstream titanium dioxide and sponge titanium markets are showing signs of weakness, with enterprises facing sustained cost pressures. Influenced by Panzhihua Steel’s new policies, raw ore exports are tight, and miners are grappling with high costs, fostering a strong market sentiment of wait-and-see. Nevertheless, the titanium dioxide market still has pent-up production capacity to release, providing some support for titanium ore demand. It is predicted that titanium raw material prices will maintain a high and volatile trend in the fourth quarter. As for the titanium dioxide market, despite current challenges, robust international demand, especially the gradually increasing export shares to Southeast Asia and the Middle East, presents certain opportunities for the market.