AM insight: Titanium market outlook bright
2010-07-15 10:01:00 【Print】
BEIJING (Asian Metal) 15 Jul 10- In the second quarter 2010, titanium sponge market moves unsteadily. With a sharp increase in Mid-May for a short period, the price slid down since late May over and over again and it is now moving down by nearly RMB12,000/t (USD1,757/t).
Titanium sponge production is the key link of titanium industry because it is the raw material of titanium plate, titanium powder and other titanium products. As titanium sponge price slides down greatly, producers of titanium products are forced to increase investment for improvement in technology in order to get profit. Chinese titanium market suffers big challenge nowadays.
Some titanium sponge producers become to reduce the output because now the price of the material slid down to RMB58,000-60,000/t (USD8.49-8.78/kg) which is close to the cost. As to the raw material for titanium sponge, titanium tetrachloride price also moved down sharply while some producers are considering stopping production. Meanwhile, minor titanium products producers turn the investment for titanium to other metal due to the pressure of quiet purchase. In that case, resources and capital for titanium will be integrated again and optimized.
Participants believe that titanium market is likely to become steady with increasing price in one or two years driven by recovery of demand from domestic and international market. It is obvious that global aerospace industries are recovering, for most countries increased the investment from this year. In that case, titanium market will become warm again in the near future. Meanwhile, global economic recovery will propel the demand of titanium products forward in chemical, metallurgy, electric power and salt industries. Furthermore, there will be more demand for titanium from Chinese important project, such as large plane, nuclear power station and ocean engineering.
In this case, though current situation of titanium market is inactive driven by slow demand and oversupply, it will not keep in downward trend further in the following months as some people expected. Overall, it will become more sound and whole in the following months.
Titanium sponge production is the key link of titanium industry because it is the raw material of titanium plate, titanium powder and other titanium products. As titanium sponge price slides down greatly, producers of titanium products are forced to increase investment for improvement in technology in order to get profit. Chinese titanium market suffers big challenge nowadays.
Some titanium sponge producers become to reduce the output because now the price of the material slid down to RMB58,000-60,000/t (USD8.49-8.78/kg) which is close to the cost. As to the raw material for titanium sponge, titanium tetrachloride price also moved down sharply while some producers are considering stopping production. Meanwhile, minor titanium products producers turn the investment for titanium to other metal due to the pressure of quiet purchase. In that case, resources and capital for titanium will be integrated again and optimized.
Participants believe that titanium market is likely to become steady with increasing price in one or two years driven by recovery of demand from domestic and international market. It is obvious that global aerospace industries are recovering, for most countries increased the investment from this year. In that case, titanium market will become warm again in the near future. Meanwhile, global economic recovery will propel the demand of titanium products forward in chemical, metallurgy, electric power and salt industries. Furthermore, there will be more demand for titanium from Chinese important project, such as large plane, nuclear power station and ocean engineering.
In this case, though current situation of titanium market is inactive driven by slow demand and oversupply, it will not keep in downward trend further in the following months as some people expected. Overall, it will become more sound and whole in the following months.
