The Overall Performance Of The Market: Price Differentiation And Structural Contradictions Coexist
The titanium market showed a differentiation pattern of "high-end rise and low-end fall" this week.
High-end titanium materials (such as titanium alloy plates/rods and aviation-grade titanium tubes)are supported by military and aerospace orders. Their prices rose slightly by 1% to 2%. Under the background of global aviation titanium supply chain reconstruction, the domestic high-end products have gradually filled the gap in Russia, and the demand gap has exceeded 32,000 tons, promoting the price upward.
Low-end civilian products (such as the ordinary chemical pure titanium plates, titanium rod wires)are affected by the downturn in domestic chemical, petroleum and low-end consumer goods demand. The prices are under pressure, and some enterprises reduce inventory pressure by selling at low prices.
0# Sponge titanium and 1# sponge titanium quotes are unchanged from last week. Although the price of magnesium raw material ingot fluctuates, the downstream procurement is mainly based on just demand, and market turnover is light. Some enterprises have large inventory pressure. the downstream processing enterprises are depressed in purchasing intentions, and they only need to replenish goods, resulting in light transactions. However, under the support of costs and the impact of inflation factors, the further price reduction space will be limited. The market has entered a stalemate stage.
The prices of pure titanium ingot (TA1) and TC4 titanium ingot are stable. Titanium ingot prices are supported by the cost of titanium sponge, but downstream demand differentiation is obvious. Military and aerospace orders are stable, supporting high-end titanium ingot prices; The civilian market (such as chemicals, and 3C electronics) demand is weak, and small and medium-sized enterprises continue to sell at low prices for the return of funds.
Titanium plate/rod: High-end grades (such as TC4) due to the increase in military and aviation orders, the price rose slightly by 1% to 2%; However, the civil field is subject to the downturn in the traditional fields of petroleum and chemical industry, and the price of ordinary chemical pure titanium series plates and rods is lower than that.
Titanium tube: Demand has picked up slightly, but the overall increment is limited, so the price remains weak and stable; Due to the delay of the project, the purchase of titanium tubes for Marine engineering was reduced.
Titanium wire: The increase in demand of the medical device field has driven the price of high-end titanium wire up, but the orders in traditional areas such as petrochemical welding materials have continued to shrink.
Demand Side: The Dual Pressure Of The Weak Domestic Demand And The Blocked Foreign Trade
Orders in traditional fields (chemical, power, and Marine engineering) decreased by 15% to 20% year-on-year, and the slowdown in investment in new projects inhibited demand release.
High-end areas (military, and aerospace) bucking the trend of growth: The domestic large aircraft C919 and new fighter demand drive high-end titanium consumption. The demand in 2025 is expected to exceed 20,000 tons.
The United States imposed tariffs: An additional 10% tariff on imported titanium materials, results in a sharp decline in the export orders. From last year to this year, the tariff increase of some titanium products reached 40%, the profit margin of advantageous export products was compressed, and the export prospects were dim.
Upgrade of export restrictions: China tightened the export policy of high value-added strategic titanium alloys, restricted the outflow of aviation-grade titanium materials, and further squeezed the foreign trade space of the enterprises.
Industry Dynamics And Competition Pattern
The leading enterprises in the titanium industry benefit from high-end orders, and the capacity utilization rate remains high. The share price of a titanium head enterprise rose 3.68% this week, broke through the half-year line, and reflected the market's confidence in the military track.
Industry concentration continues to increase, CR5(Concentration Ratio) accounted for 57%. The technical barriers promote the competition to tilt towards the quality and R&D capability.
Due to the Russia-Ukraine conflict, the global aviation titanium supply chain accelerated restructuring. Chinese enterprises took the opportunity to expand international market share, to fill the supply gap in Europe and the United States.
Upstream sponge titanium overcapacity has led to increased the competition, superimposed large-scale production, and the gross profit margin of enterprises has been compressed again.
Future Market Outlook And Strategy Suggestions
High-end titanium: Driven by military and aviation demand, the price has risen steadily.
Low-end civilian products: Inventory pressure combined with the weak domestic demand, the prices may continue the weak state.
Technology upgrade: Focus on high-end fields such as aerospace and titanium for ships, and increasing the added value of products to break through export restrictions.
Market diversification: Explore the "Belt and Road" and Southeast Asian markets to avoid the risk of tariffs in Europe and the United States.
Inventory management: Control the pace of production capacity release and avoid low-price dumping to exacerbate vicious competition in the industry.
From: 钛之家