Analysis of China's sponge titanium production in 2023

According to Tuduo statistics, China's sponge titanium output in December 2023 was 18250 tons, a year-on-year decrease of 0.82%, and a month-on-month increase of 4.17%; the cumulative annual output of sponge titanium in 2023 was 215,400 tons, a year-on-year increase of 21.72%, and the output increased by approximately 38,400 tons.

New production capacity was released, the output of individual companies increased, and market output maintained growth in December.

In December, the sponge titanium market weakened and declined. Due to the weakness of the terminal market, sponge titanium shipments were under pressure. The inventory of individual companies increased. Coupled with the release of new market production capacity, market supply increased. Market competition pressure was high, and sponge titanium prices fell. With the steady increase in the output of Panzhihua Steel, Xiangrun and Longbai in the later period, sponge titanium output will continue to increase in January, and market supply and demand will be unbalanced, making it difficult for sponge titanium prices to rise in the later period.

In 2023, China's top three producing regions of titanium sponge in China, Liaoning, Yunnan, and Xinjiang will account for 28%, 17%, and 15% of China's total output respectively.

In 2023, the sponge titanium market will decline sharply, and prices will hit market lows all the way. Due to oversupply in the market, the sponge titanium market will be under great operating pressure and the price will be operating at a low level; in 2023, the main incremental regions of the sponge titanium market will be Liaoning with an increase of 30%, and Yunnan with an increase of 41%, the output in other regions has basically increased in varying degrees; semi-process enterprises still reduce production and stop production due to high costs. Full-process enterprises have started stable and continue to improve, and market start-up continues to remain high.