The demand for aerospace is booming, while the civilian market is showing signs of cooling. China's titanium industry is undergoing an unprecedented structural transformation.
This week, the domestic titanium market presented two extreme scenarios. The price of high-end sponge titanium remained firm, with the mainstream quotation at level 0 remaining within the range of 52,000 - 54,000 yuan per ton, with an annual increase of over 500 yuan per ton. On the other hand, the low-end titanium material market remained sluggish, with the price of civilian titanium materials fluctuating weakly, and the weak downstream demand leading to an increasing inventory pressure. We will conduct a simple analysis of the market from the following aspects.
High-end demand drives the price of sponge titanium to remain firm
In the third week of June 2025, the Chinese titanium metal market continued to exhibit a distinct structural differentiation feature. The differences in demand across various application fields became the core driving force behind the price trend.
It is reported that the demand for sponge titanium in high-end sectors such as aerospace has continued to grow, supporting the prices of grade 1 and grade 0 sponge titanium to remain at high levels of 50,000 - 51,000 yuan/ton and 52,000 - 54,000 yuan/ton respectively.
Yunnan Guotai has implemented three centralized price adjustments within the year. The latest adjustment was on June 11th, with domestic customers seeing a 2,000 yuan per ton increase. This price rise mainly stems from the demand-driven increase in titanium material usage for the single aircraft C919, as well as the expected increase in demand brought about by the development of CR929.
In stark contrast to the high-end market, the civilian titanium product market has fallen into a slump. Titanium plates for chemical use, an important field of titanium application, are experiencing a weak demand situation. The market presents a situation of strong supply and weak demand, making it difficult for titanium enterprises to deliver their products.
Significant Price Differentiation in the Titanium Material Value Chain
1. Titanium Ore Raw Materials Under Pressure to Decline
As the source of the titanium industry chain, the titanium concentrate market has continued to operate in a weak state this week. The prices of domestic small-scale titanium ores have slightly dropped, with the transaction price of 46% titanium concentrate in the Panxi area falling to 1700-1730 yuan/ton, and the transaction price of 47% bulk material from major factories being approximately 2000 yuan/ton. The pressure from new orders for inquiries is relatively high, and the atmosphere of waiting and observing is strong.
2. Uneven Demand in the Titanium Material Processing Field
The overall titanium material market remains stable, but the internal structure shows significant differentiation. The prices of military and civilian products are still in a polarized state.
The high-end titanium material sector has achieved a major breakthrough. Baoji has added processing capacity and has successfully mass-produced aviation-grade 0.02mm ultra-thin titanium foil, with a width of 670mm, filling the domestic gap and with an annual production capacity of 3000 tons. This product will be directly applied to high-end fields such as the avionics system of the domestic large aircraft C919 and the battery separator of new energy batteries.
In terms of bar and wire rod, Baoji Company has introduced top-notch Italian equipment and built a production line for 5000 tons of titanium alloy precision wire rods, covering high-end demands such as aerospace fasteners and 3D printing titanium powder raw materials.
3. Titanium Tube and Titanium Powder Market
This week, the titanium tube market was relatively stable, with small price fluctuations, while the titanium powder market benefited from the rapid development of additive manufacturing industry. For example, the newly投产's bar and wire rod production line will provide high-quality raw materials for 3D printing titanium powder, which is expected to increase the application proportion of domestic titanium powder in high-end manufacturing fields.
The titanium metal market performance in the third week of June 2025 reveals the profound structural transformation that the Chinese titanium industry is undergoing.
1. Divergence in demand structure: The demand differences between the high-end manufacturing and basic application sectors are becoming increasingly significant. The demand in high-end fields such as aerospace, military, and new energy is growing rapidly, while the traditional civilian sector is constrained by the macroeconomic environment and has weak demand.
2. Gaps in technological levels: Enterprises that can break through "critical technology bottlenecks" have gained significant premium advantages through high-end products such as aerospace-grade sponge titanium and ultra-thin titanium foil; while products with lower technological content such as titanium white powder are trapped in homogeneous competition.
3. Digital empowerment accelerates: The digital transformation of the titanium industry is taking a crucial step forward. AI intelligence is expected to restructure traditional transaction models and enhance the overall efficiency of the industry chain.
With the advancement of the development of the domestically produced large aircraft CR929 and the surge in demand for nuclear fusion materials, Chinese titanium enterprises are achieving a leap from "following" to "parallel" and then to "leading" in the high-end field. The market reaction has already begun to show - the titanium sector has risen by 13.52% this year, significantly outperforming the market.
Regarding the market trend next week, the price of high-end sponge titanium will remain firm due to the support from aerospace demand, while titanium white powder, under the double pressure of export restrictions and weak domestic demand, will remain at a low level. The market differentiation pattern will not change. Only those enterprises that find their position in technological innovation and market transformation can win in the transformation and secure the future.