Chinese titanium market overview 2023.07

Since July, due to significant supply-demand imbalance, the price of sponge titanium has experienced an almost "avalanche" type of decline. The price of sponge titanium has dropped from 55,000 yuan/ton at the beginning of July to 48,000 yuan/ton at the end of July. However, this "avalanche" style price decrease has not improved the sales situation of sponge titanium; instead, downstream users continue to adopt a wait-and-see attitude.

According to the research conducted by the Baoji Titanium Industry Research Institute during visits to enterprises, it has been found that downstream customers are generally concerned about the current production capacity of sponge titanium and this year's economic situation. Firstly, major sponge titanium producers are expanding their production capacities, such as Panzhihua Iron and Steel with 35,000 tons, Longbai with 60,000 tons, Huashen with 20,000 tons, and so on. It is estimated that domestic sponge titanium production capacity will reach 230,000 tons this year. Once market demand increases, this massive capacity will quickly recover and meet the demand. Therefore, the possibility of a significant surge in sponge titanium prices is extremely low.

On the other hand, the economic situation this year is worrisome. The number of new industrial projects has noticeably decreased, downstream procurement demands are weak, and it's difficult to support such a huge production capacity of sponge titanium and titanium materials. Hence, downstream material manufacturers are responding cautiously to the price reduction of sponge titanium. They generally believe that it's prudent to make purchases based on their actual needs and digestion capacity. It is suggested that when the price of sponge titanium enters a low point, companies can consider purchasing several months' worth of inventory based on their own needs to benefit from the current market situation. However, this should be done without getting trapped due to market conditions.

This week, following the rapid consecutive decline in the price of sponge titanium, some titanium material prices have been adjusted downward, resulting in poor sales of titanium materials. The titanium material market is mainly in a weak downward trend. Retail inquiries are lackluster, production companies are facing insufficient tasks and greater pressure, and downstream demand remains low. Manufacturers are still focused on consuming their existing inventories.

However,the requirements of titanium alloy sheet are rising quickely,especially for the ams 4911 and 4919 grade ti6al4v alloy plates. The titanium sheet manufacturer HTL says, "Our production schedule is very tight, several long-term customers are rapidly increasing the ordering quantity of titanium alloy plates."

Shaanxi Hongtailai New Materials Co., Ltd（named as HTL Titanium or HTL） is a comprehensive enterprise primarily engaged in the research, development, production, and sales of titanium alloy plates and forgings. Located in Baoji City, Shaanxi Province, known as the “China Titanium Valley,” the company is one of the key high-tech enterprises nurtured and supported by the Baoji municipal organization. With the support of Baoti Group and the Northwest Institute for Nonferrous Metal Research, the company specializes in the production and sales of high-end titanium and titanium alloy plates, bars, and forgings. The company has obtained AS9100D aerospace certification and GJB 9001C chinese military certification. Its products are exported worldwide and highly praised by customers.

The core technical team of HTL Titanium consists of three experts from Baoti Group in the titanium metal materials industry, two professor, three Ph.D. ,five senior engineers in the field of titanium metal materials, six senior technicians in metal materials, one MBA professional manager, and one executive employed from a public listed company. Most of HTL’s core team members have more than 20 years of relevant work experience.

HTL Titanium’s product processing standards include but are not limited to:

AMS4901, AMS4902, AMS4904, AMS4907, AMS4911, AMS4912, AMS4913, AMS4914, AMS4916, AMS4919, AMS4928, ISO5832-2/3, ASTM F136, ASTM F67, GJB2505, GJB2919, GJB2744, GJB2218, GB/T3621, ASTM B265,etc.

www.htltitanium.com .