Why is the price of titanium sponge so stable?

- Mar 05, 2019 -

Why is the price of titanium sponge so stable?

The price of zero-grade sponge titanium of 68,000 yuan/ton has been stabilized for more than half a year, which is a rare phenomenon. Regardless of how the titanium-titanium company “prices” the price, but the price can be stable at a high level, it is enough to show that the titanium market price has gradually turned from a big ups and downs to a moderate one. This phenomenon is consistent with the analysis and prediction of the reporter in the micro-media three years ago.
The data is boring, but it is the most telling. Three years ago, the reporter wrote a number of analytical articles in the "Thirteenth Five-Year Plan", "Sponge Titanium Price" and "Mini Climb" into a Normal State in Titanium Micro-Media, in 2014 and 2015 at the end of the "Twelfth Five-Year Plan". During the Spring Festival of 2016 during the 13th Five-Year Plan, the price of sponge titanium zero-grade and first-grade products fell to 41,000~44,000 yuan/ton, and the figure will become the bottom price during the 13th Five-Year Plan period. Gradually upward. At the same time, it is believed that the fluctuation of 60,000 tons of titanium sponge will be a factor affecting the price of the “13th Five-Year Plan” in the past few years, and the facts are basically consistent. In 2016, the production of titanium sponge was more than 62,000 tons. The price trend in the year was lower at the beginning of the year and lower at the end of the year. In 2017, the price of titanium sponge is still low at the beginning of the year and at the end of the year. The highest price is 70,000 yuan/ton, which is also a rare offer in recent years. Some sponge titanium manufacturers thought that the market came, and immediately expanded production, resulting in a price drop of 20% at the end of the year. As a result, at the beginning of 2018, the price fell back to 56,000 yuan / ton. In 2017, the production of titanium sponge was more than 70,000 tons. Due to the fall in the price of titanium sponge, a sponge titanium company was discontinued in early 2018.
From 2014 to 2017, the sponge titanium market continued to decline at the beginning of the year, rising in the middle of the year and falling at the end of the year, resulting in a small amount of sponge titanium stocks in the processing enterprises in the past few years. The sponge titanium enterprises themselves have inventories and have an annual price increase. Expansion of production, increase production and destocking, the price of titanium sponge can not withstand the "wind and grass". As a result, there has been a cycle of falling prices, reducing prices, expanding prices, falling prices, and reducing production. There have been strange signs of increasing inventory and destocking, resulting in unstable markets, unstable prices, and unstable production.
After years of repeated tossing, some sponge titanium enterprises stopped production and closed, and the reduction of sponge titanium enterprises in “shuffling” achieved partial de-capacity. The inventory volatility has reduced inventory, coupled with the gradual recovery of the economy, the application of titanium has gradually broadened, and the phenomenon of falling at the beginning of the year, rising in the middle of the year, and falling at the end of the year has gradually broken. To this end, the reporter believes that the traditional pattern of the sponge titanium market has gradually faded away. Instead, the signs of recovery are getting closer, and the price of titanium sponge will not rise and fall as much as in previous years. If the price of titanium sponge was "rabbit race" 10 years ago, the price of titanium sponge in the late 13th Five-Year Plan and even the 14th Five-Year Plan is the "turtle competition".