Analysis on China Sponge Titanium Production Data of May 2023

According to statistics by TDD, the production of sponge titanium in China in May 2023 was 18,650 tons, a year-on-year increase of 49.20% and a month-on-month decrease of 1.06%. The accumulated production of sponge titanium from January to May 2023 was 92,000 tons, a year-on-year increase of 68.0%, with increased production of about 37,300 tons.

Due to weak demand from downstream markets and significant pressure on new orders, semi-process enterprises have faced production pressures, leading to a slight month-on-month decrease in sponge titanium production in May.

The top three regions in terms of production volume in May were Liaoning Province, Yunnan Province, and Xinjiang Province, accounting for 29%, 17%, and 14% of total production respectively.

Many sponge titanium enterprises have refrained from giving quotes in May, causing market prices to be chaotic. The downstream titanium material market is relatively weak, and domestic demand recovery is slower than expected. Export orders have also decreased. With a certain degree of excess supply and inventory, the sponge titanium market has experienced stable but weak prices. The average monthly price in May decreased by approximately 3.5% compared to the previous month. However, the cost prices of raw materials and other supplies remain relatively high, and it is expected that the sponge titanium prices will remain weak and stable.