China Titanium Market Analysis (January 21)
I. Overview of the Titanium Market
Titanium Ore
As the starting point of the industrial chain, the titanium ore market maintains a stable price foundation. Today, the titanium ore price index in the Panzhihua-Xichang region closed at 1782.50, remaining stable. Currently, the market supply and demand are basically balanced, with downstream procurement mainly driven by rigid demand.
There has been no large-scale hoarding or price suppression, providing stable support for titanium ore prices in the short term. Supply in Yunnan is constrained by mining permit issues, while mining in Chengde, Hebei, is affected by low temperatures. These factors have, to some extent, offset the increased operating rate in the Panzhihua-Xichang-Xinjiu region due to the recovery of transportation and increased raw material supply, leaving the overall operating rate of domestic titanium mines still below saturation.
High-Titanium Slag
The market continues to operate amidst cost pressures and market competition. In January, the bidding price of major enterprises in northern China was set at 5400 yuan/ton, unchanged from the previous month. Due to persistently high production costs, the current effective supply in the market is not abundant. However, looking ahead, new production capacity is expected to be added in the market in 2026, potentially increasing supply and intensifying market competition, putting pressure on producers' profit margins.
As a key intermediate product connecting titanium slag and sponge titanium, the market maintains a tight balance between supply and demand. Current market prices range from 4800-5550 yuan/ton, with enterprise inventories generally at low levels. The tight supply-demand relationship supports stable prices, and in actual transactions, some orders are negotiated on a case-by-case basis based on factors such as purchase volume and cooperative relationships.
Sponge Titanium
The sponge titanium market is one of the most significantly supported links in the current industrial chain. Currently, the mainstream price for Grade 1 civilian sponge titanium remains at 45,000-47,000 yuan/ton, while Grade 0 sponge titanium is priced at around 46,000-48,000 yuan/ton.
There are three main factors supporting its firm price: First, stable order demand from downstream aerospace, chemical, and other sectors provides continuous order support for manufacturers; second, the prices of major raw materials such as magnesium ingots and titanium tetrachloride remain high, ensuring smooth downward transmission of cost pressures; and finally, sponge titanium manufacturers maintain high operating rates, fully releasing capacity without inventory backlog, and this healthy production and sales situation consolidates the price foundation.
As the largest consumer sector in the titanium industry chain, the titanium dioxide market has recently shown a stabilizing trend. Today, the titanium dioxide price index was 13490.03, unchanged from yesterday. The market faces a tug-of-war between "rising costs" and "sluggish demand." On the one hand, the price of the main raw material, titanium ore, remains firm, coupled with a recent rebound in sulfuric acid prices, resulting in significant overall cost pressure for titanium dioxide production.
On the other hand, with the Spring Festival holiday approaching, some downstream industries have gradually suspended operations, slowing down new orders. To cope with market changes and maintain equipment, some titanium dioxide producers have begun implementing their annual maintenance plans, leading to a slight decline in the overall industry operating rate from its previous high.
This proactive supply adjustment helps alleviate the supply-demand imbalance in the market, stabilizing titanium dioxide prices, and resulting in more negotiated transactions on a case-by-case basis.
II. Titanium Price Summary
III. Industry Operating Rates
Titanium Ore
The recovery of road transportation in the Panzhihua-Xichang-Xinjiang-Jiujiang region, coupled with increased raw material supply, has boosted operating rates. However, due to issues with mining permits in Yunnan and low temperatures in Chengde, domestic titanium ore production is generally insufficient.
Titanium Dioxide
This month, some companies have maintenance plans, resulting in high titanium dioxide operating rates.
Sponge Titanium
Sponge titanium producers are operating at high rates.
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