BaoTi titanium mill products cut as demand weakens in 1H25

BaoTi titanium

BaoTi titanium mill products output fell as downstream demand cooled, and BaoTi titanium mill products sales also dropped on pricing pressure, pushing first-half revenue lower and squeezing margins despite operational discipline. BaoTi titanium mill products output declined by 4.3% to 16,633t and sales fell 11% to 15,843t as chemical and 3C demand softened, while operating revenue slid 21% to Yn2.967bn on weaker realized prices. Civilian segments underperformed as discretionary spending slowed, although aerospace demand provided only a limited offset in the mix and did not prevent margin compression.

Supply context and market balance

China’s upstream titanium cycle remained resilient, with national titanium ingot output rising 6% to 160,000t in 2024, marking a tenth straight annual increase and highlighting supply firmness. Ti-6Al-4V represented 46% of ingots, commercially pure grades accounted for 43%, and other alloys made up 11%, underscoring a tilt toward higher-spec applications even as some end markets cooled. Major mills produced 172,000t of titanium mill products in 2024, up 8.1% year on year, indicating that supply expansion continued into 2025 and intensified competitive pressure on pricing and product mix.

Outlook and strategic implications

BaoTi is likely to emphasize higher-spec and value-added grades to stabilize margins while weak chemical and 3C demand persists, and disciplined cost control with selective contracting could support cash generation near term. A tighter focus on aerospace, medical, and premium corrosion-resistant alloys may help offset softer civilian segments, but sustained national output growth and firm competitor utilization cap pricing power until demand normalizes.

The Metalnomist Commentary

BaoTi’s near-term lever is mix upgrade, not volume, given broad Chinese supply strength. Watch mill discipline, aerospace call-offs, and any recovery in chemical and 3C orders for the next margin inflection.