November Titanium Market Review

- Dec 17, 2018-

November Titanium Market Review

In November, the price of titanium ore in the Panzhihua area in China remained stable. In mid-November, the National Inspection Team launched an environmental inspection of Panzhihua City, which led to the suspension of production of local small and medium-sized mining plants and downstream enterprises. The author believes that the suspension of production will result in a decrease of 25,000 tons of Panzhihua titanium mines in the month; while downstream enterprises are also in a state of reduced production, resulting in a simultaneous decline in demand for titanium ore. Therefore, the Panzhihua titanium mine market has not fluctuated. In the imported titanium ore market, the demand for high-grade titanium ore and low-impurity titanium ore is strong, while the sales of ordinary titanium ore are cold. The quantity of imported titanium ore has been maintained at a relatively high level, while the downstream demand has gradually decreased. The inventory of imported titanium ore with normal quality has been increasing, and its price has also dropped by about 50 yuan/ton.

In November, the domestic rutile market increased its activity. As downstream companies increased their purchases of high-grade rutile, the number of market inquiries and transactions increased. Affected by this, the price of 95 rutile has increased, and the market is expected to generally improve. The rutile market of 90 and below is relatively flat, the price of the product has not changed, and the demand has not improved.

In November, the domestic titanium slag market continued to be in a downturn. Among them, the price of chlorinated slag in the northern region dropped slightly by RMB 10/ton. Due to poor market demand, the production enthusiasm of titanium slag enterprises is generally not high. In November, the reduction of production by downstream enterprises made the demand for chlorinated slag lower, which led to a relatively quiet market for chlorinated slag. The price of acid slag was loose at the end of the month. Due to the reduction of production by downstream enterprises, some titanium slag enterprises were forced to lower the price of the new round of acid slag. In the absence of loose raw material costs, the loosening of product prices has led to acid production enterprises facing greater production pressure.

In November, Liaoning Province ushered in a new round of environmental inspections, which caused some local titanium tetrachloride enterprises to temporarily stop production. In addition, in the first half of the year, a large-scale titanium tetrachloride enterprise in China experienced a production accident, which caused the company to be forced to stop production. This has made the already tight supply of titanium tetrachloride market even more severe. Affected by this, some of the supply of raw materials for titanium sponge enterprises is insufficient, resulting in an impact on production.