Market Overview
In 2020, the sponge titanium (Ti) market experienced a “roller-coaster” ride:
- April 9: First price drop from ~80,000 CNY/ton to 73,000 CNY/ton due to pandemic impacts.
- Lowest: Transactions fell below 45,000 CNY/ton.
- May onward: Market began slow recovery, stabilizing around 55,000–65,000 CNY/ton.
- December 14: “Collective” price rise from ~59,000 CNY/ton to 64,000 CNY/ton, showing rare market consensus in price increase.
Price fluctuations depend on multiple factors: raw material costs, expansion pace, and downstream demand. Actual transaction prices vary by company due to management, quality, cost, and operational differences.
Ten-Year Historical Perspective (2011–2020)
- “12th Five-Year Plan” (2011–2015)
- Sponge titanium cumulative production: 357,434 tons
- Titanium ingot production: 305,696 tons
- Sponge titanium prices fluctuated at low levels, market-driven rather than alliance-determined.
- “13th Five-Year Plan” (2016–2020)
- Sponge titanium cumulative production: 399,476 tons (2020 first time surpassing 100,000 tons)
- Titanium ingot cumulative production: 389,958 tons
- 2018–2019: Titanium ingot output slightly exceeded sponge titanium, indicating increasing downstream demand and widening applications.
- Price bottom at ~42,000 CNY/ton (2016), slowly rising afterward, confirming market recovery and alignment with prior analyses.
Future Development Momentum
- Downstream demand remains strong, providing stable growth for sponge titanium.
- 2020 production of 100,000 tons marks a milestone in China’s sponge titanium industry.
- Market strategy should focus less on price alliances and more on:
- Controlled capacity expansion
- Process innovation
- Quality improvement
- Cost efficiency
Outlook for the “14th Five-Year Plan”
Key questions for the future include:
- Where will the “spring” of sponge titanium industry be?
- Mainly in downstream and end-user applications with rigid demand growth.
- Which sectors will expand titanium demand?
- Aerospace, military, industrial manufacturing, medical implants, and emerging consumer applications.
- What should sponge titanium enterprises focus on?
- Balanced expansion, technological upgrades, product quality, and cost control to maintain sustainable growth.
Conclusion:
The ten-year trend demonstrates strong development momentum for sponge titanium, with continued slow but steady growth expected. Companies should focus on innovation and efficiency rather than short-term market speculation to ensure long-term sustainability.