China Titanium Sponge Capacity Surge Deepens Oversupply Pressure

Titanium Sponge

China titanium sponge capacity is set to expand sharply through 2026, intensifying oversupply, margin pressure and competition across the domestic titanium industry. Operating capacity is expected to reach 411,000 t/yr by year-end, with more than 130,000 t/yr of new capacity planned.

China titanium sponge capacity could exceed 550,000 t/yr within three to five years, far outpacing recent growth in downstream titanium ingot and mill product output.

China titanium sponge capacity growth is becoming increasingly difficult to absorb because demand from major end-use sectors remains weak. Chemical, aerospace and consumer electronics consumption all declined in 2025.

The mismatch is pushing Chinese producers toward exports, but trade barriers, carbon costs and weaker Japanese demand could limit how much excess sponge can be absorbed overseas.

Sponge Supply Is Growing Faster Than Downstream Titanium Demand

China’s nine operating sponge producers produced 281,000t in 2025, up 9.8% from a year earlier.

Downstream growth was slower. Titanium ingot production increased by 6.2% to around 169,900t, while mill product output rose by 6.4% to 183,000t.

This widening gap is increasing inventory and pricing pressure across the titanium chain.

The chemical industry remained China’s largest titanium-consuming sector in 2025, accounting for 73,172t of mill product demand. Consumption nevertheless declined slightly from the previous year.

Aerospace demand fell to 30,796t, down by 1,396t, while computer, communications and consumer electronics demand dropped by 2,266t to 7,933t.

Weak demand in these sectors is particularly problematic because much of China’s sponge production remains concentrated in lower-end grades.

Domestic producers therefore face increasingly homogeneous competition, where multiple suppliers compete for the same chemical and industrial applications.

Revenue and margins are already under pressure, and additional capacity expected in 2026 could make operating conditions even more difficult.

Exports Face Carbon, Quality and Geopolitical Barriers

Chinese producers are increasingly looking overseas to absorb excess titanium sponge supply, but export markets present their own challenges.

Europe’s carbon border policies could weaken Chinese price competitiveness because domestic sponge production is highly electricity intensive.

Chinese producers typically consume around 24,000 kWh of electricity per tonne of titanium sponge, compared with around 10,000 kWh/t in Japan.

That difference could become increasingly important as customers and regulators place greater value on embedded carbon.

Japan is another difficult market. Deteriorating China-Japan relations have already reduced orders, limiting one of the more logical outlets for Chinese surplus production.

Quality is also a structural constraint.

Chinese producers still lag established Japanese suppliers such as Toho Titanium and Osaka Titanium in high-purity sponge used in demanding aerospace and premium alloy applications.

This means additional capacity does not automatically translate into access to higher-value markets.

The industry therefore faces a strategic choice. Producers can continue competing on volume and price in lower-end markets, or invest in purity, consistency, carbon efficiency and downstream integration.

The Metalnomist Commentary

China’s titanium problem is shifting from insufficient capacity to excessive low-end capacity. Without stronger aerospace demand or major upgrades in purity and energy efficiency, new sponge projects risk intensifying price competition rather than creating higher-value growth.

China Titanium Dioxide Exports Rise 31% as India Shipments Recover

Titanium dioxide

China titanium dioxide exports rose sharply in May as shipments recovered from the weak year-earlier comparison and demand from India strengthened. Total exports reached 152,761t, up 31% from a year earlier.

China titanium dioxide exports nevertheless fell 21% from April’s 193,503t. Overseas buyers had accelerated purchases during March and April on expectations of further price increases, reducing immediate requirements in May.

China titanium dioxide exports reached 883,080t during January-May, up 13% from the same period last year. The increase confirms China’s continuing importance as a major supplier to global coatings, plastics, paper and other pigment-consuming industries.

India emerged as a leading destination for both chloride- and sulphate-process material despite trade measures affecting Chinese TiO2.

Chloride and Sulphate Exports Show Different Market Dynamics

China exported 34,354t of chloride-process titanium dioxide in May, up 38% year on year but down 20% from April.

India was the largest destination with 3,758t, followed by Vietnam with 3,185t and South Korea with 2,713t.

Chloride-process TiO2 generally serves higher-performance applications requiring strong brightness, durability and pigment quality. Expansion of Chinese chloride capacity has therefore helped domestic producers compete more directly in higher-value international markets.

Sulphate-process exports remained much larger at 118,407t in May. Shipments increased 6.9% from a year earlier but fell 21% from April.

India again ranked first with 13,646t, followed by Turkey at 9,611t and South Korea at 8,598t.

The continued dominance of sulphate-process material reflects China’s extensive installed production base and competitive cost position across commodity pigment markets.

However, the faster year-on-year growth in chloride exports suggests China is gradually strengthening its position in more technically demanding TiO2 segments.

Higher Exports Support Titanium Feedstock Demand

Sustained titanium dioxide production has implications further upstream in the titanium mineral supply chain.

Chloride-process plants typically require higher-grade titanium feedstocks, while sulphate production can consume a broader range of ilmenite and titanium slag products.

Higher Chinese pigment output can therefore support demand for ilmenite, upgraded titanium slag and other TiO2 feedstocks.

India remains an important market despite anti-dumping measures introduced against Chinese material. The recovery in shipments indicates that trade barriers have not removed underlying Indian demand for competitively priced pigment.

However, monthly export volatility remains significant. The May decline from April shows that buyers can shift purchasing schedules rapidly when they expect price changes.

For Chinese producers, continued export growth will depend on maintaining cost competitiveness while navigating anti-dumping duties and other trade barriers in major consuming markets.

China Titanium Dioxide Exports

The Metalnomist Commentary

China’s TiO2 export strength shows that trade measures can redirect or delay shipments without necessarily removing underlying demand. The more strategic development is the growth of chloride-process exports, which could increase China’s demand for higher-grade titanium mineral feedstocks.

China Strategic Minerals Framework Tightens State Control Over 36 Resources

Strategic Minerals

China strategic minerals policy has entered a more formal phase after Beijing placed 36 mineral resources under tighter central government control. The revised regulations strengthen state oversight of mining, exploration, production quotas and strategic reserves.

China strategic minerals covered by the framework include major industrial metals, battery materials, rare earths, semiconductor metals and energy resources. The rules also include non-metallic materials such as graphite, phosphate, fluorite and high-purity quartz.

China strategic minerals regulation is significant because many of the affected materials are essential to batteries, aerospace, defence, semiconductors, energy infrastructure and advanced manufacturing.

The immediate market impact has been limited because several controls already existed in practice. However, formalising them under a single legal framework could strengthen Beijing's ability to manage supply over the longer term.

Centralised Quotas and Reserves Strengthen Supply Management

The Ministry of Natural Resources, working with the National Development and Reform Commission, will set annual mining quotas for strategic minerals.

The objective is to prevent uncontrolled production while giving central authorities greater control over national resource development.

Approvals for new exploration and mining rights will also be consolidated at the central level. Authorities will restrict the number of mining licences granted for individual deposits.

This could slow uncontrolled capacity growth in some markets while giving Beijing more influence over production timing and regional development.

The new framework also establishes a three-tier reserve system covering physical product inventories, production capacity and undeveloped resource sites.

State and private companies will jointly participate in stockpiling, while resource-site reserves are expected to remain available for at least five years.

This creates a broader security mechanism than conventional commodity stockpiles. China will not only hold material inventories but also preserve future production capability and undeveloped resources.

For strategically sensitive metals, this could provide Beijing with greater flexibility to respond to supply disruptions, price volatility or geopolitical pressure.

Rare Earths and Semiconductor Metals Gain Greater Strategic Weight

The list covers 25 metallic commodities, including iron, copper, aluminium, titanium, vanadium, manganese and chromium.

Battery materials such as lithium, cobalt and nickel are included alongside all 17 rare earth elements.

China has also designated tungsten, antimony, tin and molybdenum as strategic resources, together with semiconductor and specialty metals including gallium, germanium, indium, rhenium, niobium, tantalum, beryllium, zirconium and hafnium.

This combination is important because China already holds dominant positions across many of these supply chains.

Rare earth separation, tungsten processing, antimony, gallium and germanium are particularly sensitive because alternative global processing capacity remains limited.

The inclusion of high-purity quartz also highlights the expanding definition of strategic materials. Quartz is an important input in semiconductor and solar manufacturing, linking mineral security directly with advanced technology industries.

The framework therefore goes beyond mining policy. It strengthens China's ability to manage the upstream materials required for manufacturing competitiveness and national security.

The Metalnomist Commentary

China is moving from individual export controls and quotas toward a comprehensive strategic resources system. The long-term implication is greater state influence over not only current supply, but also future capacity and undeveloped reserves across many of the world's most critical materials.

China Boeing Aircraft Deal Signals Trade Thaw but Rare Earth Controls Remain

Boeing

China Boeing aircraft deal confirmation marks a concrete outcome from recent China-US trade talks, but Beijing’s position on tariffs and rare earth export controls shows that strategic supply-chain tensions remain unresolved. China’s Ministry of Commerce said the country will purchase 200 Boeing aircraft under commercial principles.

China Boeing aircraft deal terms also include US commitments to provide sufficient engine and related component supplies. Both sides described aviation as a key sector for mutually beneficial cooperation, giving the agreement wider industrial significance beyond aircraft sales.

China Boeing aircraft deal confirmation is important for aerospace supply chains because Boeing aircraft demand supports engines, titanium, aluminium, nickel superalloys, avionics, landing gear and precision manufacturing. A large Chinese order could improve long-term visibility across several high-value materials and components.

The readout also clarified China’s tariff stance. Beijing said any future US tariffs on Chinese goods should not exceed levels agreed under the joint arrangement reached at the Kuala Lumpur trade consultations.

Aviation Deal Supports Aerospace Supply Chains

The planned purchase of 200 Boeing aircraft could support a broad aerospace supply chain if deliveries move forward smoothly. Aircraft orders generate demand across airframes, engines, forgings, fasteners, castings, electronics and maintenance networks.

For metals markets, the deal is relevant to titanium, aluminium, nickel-based superalloys and specialty steels. Aircraft production and engine supply depend on qualified materials with long approval cycles and strict traceability requirements.

The US side’s commitment to engine and component supply is also significant. Aircraft sales are not only about airframes. Engines, spare parts and related systems determine delivery schedules, airline operations and aftermarket demand.

The agreement may also help stabilise one of the most politically sensitive parts of China-US industrial trade. Aviation has historically been a major commercial bridge between the two economies.

However, execution will matter. Aircraft deliveries require production slots, engine availability, regulatory coordination, financing and customer acceptance. The announcement gives direction, but the supply-chain impact will depend on actual delivery timing.

Tariffs and Rare Earth Controls Keep Strategic Tension Alive

China said future US tariffs on Chinese goods should stay within the levels agreed under the Kuala Lumpur framework. It also said it wants to remove unilateral US tariffs through follow-up negotiations.

Under the earlier arrangement, the US removed a 10% fentanyl-related tariff on Chinese goods and suspended a 24% reciprocal tariff for one year. It also suspended the 50% permeation rule under export controls for one year.

Section 301 tariffs on certain Chinese products remain in place. This means the tariff dispute is not finished, even if both sides are discussing reciprocal reductions for goods worth at least $30bn on each side.

Critical minerals remain the sharper strategic issue. MOFCOM said China applies export controls on rare earths and other materials according to law, and that compliant civilian licence applications are being reviewed.

The materials named include yttrium, scandium, neodymium and indium. These inputs are important for aerospace, defence, semiconductors, magnets, displays, alloys and advanced manufacturing.

US rare earth buyers remain concerned that approved licence volumes are limited. Market participants expect approval cycles could shift from around one week of supply toward biweekly or monthly volumes, but uncertainty remains high.

This means the China-US trade thaw is selective. Aviation cooperation may improve, but Beijing is preserving control over critical mineral flows that give it leverage in strategic industries.

Agricultural products may also enter the reciprocal tariff reduction framework. China still applies 10-15% tariffs on US agricultural goods, which could affect whether private buyers can meet purchase commitments.

The broader message is that China and the US are trying to stabilise trade without fully removing industrial security barriers. Aircraft, agriculture and selected tariff reductions may advance, while rare earths and export controls remain managed pressure points.

The Metalnomist Commentary

The Boeing deal shows that China and the US can still use aviation as a commercial stabiliser. But rare earth licensing remains the real strategic lever, and that will keep aerospace, defence and advanced manufacturing buyers focused on supply security rather than trade headlines.

Tronox Zircon Sand Prices Rise as China Faces Higher Third-Quarter Import Costs

Tronox

Tronox zircon sand prices have increased for third-quarter deliveries to China as higher mining input costs and delivery expenses push exporters to raise offers. The US-based titanium dioxide and zircon producer lifted prices for both Australian-origin and South African-origin zircon sand.

Tronox zircon sand prices for 66% grade Australian-origin material rose by $225/t from the April-June quarter to $1,950-1,975/t cif China. South African-origin material also increased by $225/t to $1,935-1,955/t cif China.

Tronox zircon sand prices are important because China remains a major importer and processor of zircon sand and concentrates. Higher import costs can quickly feed into domestic zirconium chemicals, ceramics, refractories and zirconium-titanium beneficiation markets.

The move also raises expectations that Iluka Resources may increase third-quarter export offers to China. Iluka’s heavy minerals output fell sharply in the first quarter, tightening expectations around premium supply.

Higher Export Offers Reflect Cost and Supply Pressure

Tronox cited continued inflation in key inputs across its global mining operations, along with rising delivery costs. These pressures are now being passed into third-quarter zircon sand offers.

The increase comes as supply from major producers remains under scrutiny. Iluka produced 47,600t of heavy minerals in the first quarter, down sharply from 130,700t a year earlier.

Lower output from major suppliers can strengthen sellers’ pricing power, especially when buyers need consistent quality from established origins such as Australia and South Africa.

China’s import data also show a tighter year-on-year supply picture. Imports of zircon sand and concentrates fell by 18% in January-March to 498,703t.

March imports reached 156,526t, down 23% from a year earlier but up 30% from February. Australia, South Africa and Nigeria were the top suppliers during the month.

This mixed import pattern shows that Chinese buyers are still active, but overall availability has weakened compared with last year. That gives overseas miners more room to lift offers.

Chinese Domestic Prices Move Higher Ahead of New Contracts

Domestic Chinese zircon sand prices have also been rising since mid-March. Prices for 65% grade zircon sand reached 9,800-10,000 yuan/t ex-works with value-added tax unpaid.

This domestic increase reflects anticipation of higher third-quarter export offers from overseas mining companies. Zirconium-titanium beneficiation producers have already lifted offers in response.

The price movement matters for downstream users. Zircon sand is a key feedstock for ceramics, foundry applications, refractories, zirconium chemicals and specialty materials.

Higher zircon sand costs can squeeze processors if downstream demand does not fully absorb the increase. But if supply remains tight, buyers may have limited ability to resist higher offers.

For China, the market is increasingly dependent on imported material from Australia, South Africa and other producing countries. That import reliance makes domestic pricing sensitive to overseas mining costs, freight and output discipline.

The third-quarter pricing round will therefore be a key test. If Iluka follows Tronox with higher offers, Chinese processors may face a broader reset in zircon feedstock costs.

The Metalnomist Commentary

Tronox’s price increase shows that zircon sand is moving with the same logic affecting many industrial minerals: higher costs, tighter supply and stronger producer discipline. China’s processors may accept higher prices if major suppliers align, but downstream demand will decide how much of the increase can be passed through.

LB Titanium Dioxide Output Falls as Sponge and Battery Materials Expand

LB Titanium

LB titanium dioxide output fell in 2025 as weaker prices, slower demand and rising trade barriers pressured the global pigment market. China’s largest titanium producer reported titanium dioxide production of 1.28mn t, down 1.5% from a year earlier.

LB titanium dioxide output declined even as sales edged higher to 1.26mn t. Domestic sales accounted for 45% of volumes, while international sales made up 55%, showing that overseas markets remain critical to the company’s TiO2 business.

LB titanium dioxide output came under pressure from structural oversupply. New capacity entered the market, prices weakened and several domestic producers cut operating rates to protect margins.

The company also pointed to anti-dumping duties imposed by the EU, Brazil, Saudi Arabia and the Eurasian Economic Union, along with higher US tariffs on Chinese material. These measures have fragmented trade flows and made the global titanium dioxide market more difficult for Chinese exporters.

Titanium Sponge Offers a Stronger Counterweight

LB’s titanium sponge business moved in the opposite direction. Titanium sponge output rose by 2.3% on the year to 71,300t, while sales increased by 0.9% to 67,500t.

The stronger sponge result matters because titanium sponge sits closer to aerospace, industrial titanium mill products and high-performance alloy supply chains. It gives LB a more diversified titanium platform beyond pigment markets.

Titanium sponge prices were also firmer. Domestic 99.7% grade sponge prices averaged 49,665 yuan/t ex-works in 2025, up from 48,270 yuan/t a year earlier.

LB has 80,000 t/yr of titanium sponge capacity, the largest globally. That scale gives the company a major position in a market where feedstock security, product quality and downstream demand from titanium processors remain strategically important.

Titanium concentrate output fell by 3% to 1.45mn t, but LB did not sell concentrate externally. All concentrate was consumed internally to produce titanium dioxide and titanium sponge.

This internal use highlights the company’s integrated titanium value chain. LB can direct feedstock toward different downstream products depending on market conditions, although weak TiO2 demand still affects overall profitability.

Iron ore concentrate output fell more sharply, dropping by 18% to 3.04mn t. Sales decreased by 2.1% to 2.94mn t, showing softer performance in another mineral by-product stream.

Iron Phosphate Growth Signals Battery Materials Diversification

LB’s battery materials business showed much stronger momentum. Iron phosphate output jumped by 72% to 97,600t, while sales rose by 59% to 96,000t.

The growth was driven by firm demand from the lithium-ion battery sector. Iron phosphate is a key precursor for lithium iron phosphate cathode materials, which are widely used in electric vehicles and energy storage systems.

This diversification is strategically important. Titanium dioxide remains LB’s largest product line, but the pigment market is facing oversupply, trade restrictions and weaker pricing. Battery materials offer a different growth channel tied to China’s expanding LFP ecosystem.

LB has 100,000 t/yr of iron phosphate capacity and 50,000 t/yr of LFP capacity. It also has 25,000 t/yr of graphite anode capacity and 50,000 t/yr of graphitisation capacity.

That product base positions LB across titanium, zirconium and battery materials. The company is no longer only a titanium dioxide producer, even though it remains the world’s largest TiO2 producer with 1.51mn t/yr of capacity.

The 2025 results show a clear split in the business. Titanium dioxide is under pressure from oversupply and trade action. Titanium sponge is holding stronger. Iron phosphate is growing with battery demand.

For LB, the industrial challenge is to manage a mature pigment business while expanding higher-growth materials platforms. Its integrated mineral base gives it flexibility, but market conditions across TiO2, sponge and battery materials are moving in different directions.

The Metalnomist Commentary

LB’s results show how Chinese titanium producers are moving beyond pigment exposure into sponge and battery materials. The strategic value lies in feedstock integration, because companies that can shift internal mineral flows between TiO2, titanium sponge and battery precursors will be better positioned in volatile markets.

LB Titanium Dioxide Plant Acquisition Revives UK TiO2 Pigment Capacity

LB TiO2

LB titanium dioxide plant ownership has expanded into the UK after China’s largest TiO2 producer acquired the Greatham pigment manufacturing site from Venator Materials UK. The acquisition gives LB Group a European production base for titanium dioxide pigments used in coatings and plastics.

LB titanium dioxide plant operations at Greatham are expected to restart this year through Tioxide, a new wholly owned subsidiary. The move gives LB direct manufacturing capacity in the UK at a time when European buyers are reassessing supply security, trade exposure and regional pigment availability.

LB titanium dioxide plant expansion also strengthens the company’s global position. LB Group already has combined TiO2 capacity of 1.51mn t/yr, making it the world’s largest titanium dioxide producer.

The transaction follows a $69.9mn purchase agreement signed with Venator in October 2025. The UK Competition and Markets Authority cleared the acquisition on 23 April.

Greatham Restart Adds Regional Pigment Supply

The Greatham site will manufacture TiO2 pigments for coatings and plastics. These are core industrial markets where titanium dioxide provides whiteness, opacity, brightness and durability.

Restarting the facility could improve regional availability for European and UK customers. It also allows LB to serve some customers from within the market rather than relying only on exports from China.

This matters because TiO2 is widely used in construction coatings, packaging, automotive coatings, plastics, inks and consumer goods. Supply disruptions or trade restrictions can quickly affect downstream manufacturers.

The acquisition also gives LB a strategic foothold in a mature industrial market. Owning European production assets can help the company manage customer relationships, regulatory requirements and product qualification more directly.

For the UK, the deal could preserve TiO2 pigment manufacturing capacity at a site previously owned by Venator. The key question will be how quickly LB can restart operations and secure stable feedstock, labour and customer demand.

Trade Remedies Add Strategic Complexity

The acquisition comes as the UK Trade Remedies Authority investigates imports of rutile titanium dioxide from China. That investigation adds a trade-policy dimension to LB’s European expansion.

Billions Europe, an LB subsidiary, has requested that ink-grade TiO2 be excluded from the case. The request shows how product-specific distinctions can become important in anti-dumping proceedings.

For LB, owning a UK production site may help reduce exposure to import-related trade measures. Local production can also support customers that prefer regional supply or need more predictable delivery.

However, the broader TiO2 market remains highly competitive. Producers face pressure from energy costs, raw material availability, environmental rules, demand cycles and trade remedies.

The Greatham restart will therefore test more than acquisition execution. It will test whether a Chinese producer can use a UK manufacturing asset to strengthen its position in European pigment markets while navigating trade scrutiny.

The Metalnomist Commentary

LB’s Greatham acquisition shows that Chinese materials producers are not only exporting more; they are buying production footprints inside target markets. For TiO2 buyers, the deal could improve local availability, but trade policy will remain a major factor shaping supply routes.

China Titanium Sponge Exports Rise in March as Asian Buyers Support Demand

China Titanium Sponge

China titanium sponge exports rose year on year in March, supported by stronger buying interest from South Korea, India, Vietnam and Slovenia. Chinese customs data showed exports reached 453t during the month, up 8.6% from 417t a year earlier.

China titanium sponge exports still declined by 7.4% from February’s 489t, showing that overseas buying remained selective. Some buyers were not under immediate pressure to purchase Chinese material because spot supply was sufficient.

China titanium sponge exports totalled 1,535t in January-March, down 5.7% from a year earlier. The decline reflected weaker buying from major consumers including Japan, South Korea and the US.

The data show a titanium sponge export market that is recovering unevenly. Asian demand helped March shipments, but inventory drawdowns, delayed purchasing and weaker aerospace-linked orders continued to limit broader export momentum.

Japan, South Korea and US Demand Weaken in First Quarter

Japan remained the largest destination for Chinese titanium sponge in January-March, receiving 347t. However, shipments fell by 37% from 548t a year earlier.

The decline was mainly caused by delayed purchasing from a major Japanese consumer. Purchases are expected to resume in May, which could support later-quarter export flows.

South Korean imports from China also fell. Shipments dropped by 33% to 172t as some buyers slowed procurement after failing to secure downstream aerospace original equipment manufacturer orders.

This matters because aerospace demand remains one of the most important drivers of higher-grade titanium sponge consumption. When downstream aerospace orders are delayed, sponge buyers often reduce spot intake and work through inventories.

US demand was almost absent in the first quarter. China exported only 0.2t of titanium sponge to the US, down 99.8% from a year earlier, as US consumers continued drawing down inventories.

The US result highlights the effect of inventory cycles and trade uncertainty. Even when Chinese material remains available, buyers may delay purchases if they have sufficient stock or face qualification, tariff and policy risk.

Export Prices Track Higher Domestic Sponge Market

Chinese 99.7% grade titanium sponge export prices averaged $6.70/kg fob China in January-March. This was up 1.5% from $6.60/kg a year earlier.

The increase tracked higher domestic titanium sponge prices. Export pricing therefore reflected cost support in China rather than a broad surge in overseas demand.

The modest price rise also shows that the market remains balanced. Chinese suppliers have support from domestic costs, but overseas buyers are still cautious and selective.

For global titanium supply chains, the key issue is not only volume. The quality, qualification status and end-use requirements of sponge matter, especially for aerospace and high-performance industrial applications.

China’s titanium sponge exports remain important for regional buyers in Asia and Europe. However, demand from aerospace-linked customers will depend on downstream order visibility, inventory levels and qualification confidence.

If Japanese buying resumes in May and South Korean aerospace-related demand improves, Chinese exports could recover further. But weak US flows suggest that trade and inventory factors will continue to limit upside in some markets.

The Metalnomist Commentary

China titanium sponge exports show a market supported by regional buying but still constrained by aerospace order timing and inventory drawdowns. The next signal will come from whether Japanese and South Korean buyers return with stronger qualified-material demand in the second quarter.

China Aerospace-Grade Titanium Sponge Exports Set to Rise as OEMs Diversify Supply

China Aerospace-Grade Titanium Sponge

China aerospace-grade titanium sponge exports are expected to rise over the next five years as western aerospace supply chains look for additional qualified raw material sources. Chinese producer Chaoyang Jinda Titanium expects international shipments of qualified aerospace-grade sponge to increase from around 1,000t this year to 10,000t by 2030.

The shift reflects a deeper change in the aerospace titanium supply chain. Western aircraft manufacturers and ingot melters are trying to reduce exposure to Russian supply, while aircraft build rates are expected to rise from 2027.

China aerospace-grade titanium sponge is therefore moving from a limited export niche into a potential supply-chain balancing tool. However, tariffs, qualification risk and geopolitical uncertainty will limit how quickly US and European buyers adopt Chinese material.

The opportunity is strongest in standard-quality structural titanium grades. Premium-quality sponge for engine, landing-gear and other critical applications is likely to remain controlled by established suppliers with long qualification histories.

Western Aerospace Buyers Face a Supply-Diversification Challenge

Aerospace-grade sponge demand is expected to recover from 2027 after a weaker 2026 caused by inventory normalisation. Mills have been reducing stocks of semi-finished titanium parts and raw materials, but aircraft production plans point to higher requirements later in the decade.

The timing is important. Airbus and Boeing both carry long aircraft backlogs, creating a decade of production visibility. This forces mills and original equipment manufacturers to look beyond short-term demand swings and secure raw material sources for future build-rate increases.

Western OEMs also continue to reassess Russian titanium exposure. If procurement from Russia declines, the market will need alternative aerospace-qualified sponge to fill the gap. Japan’s Toho Titanium and Osaka Titanium are expanding, while China is preparing to supply more qualified material.

Global approved aerospace-grade sponge supply excluding Russian products is expected to rise from about 74,000t this year to around 91,000t by 2030. Demand is expected to grow at a similar pace, leaving the market sensitive to which suppliers are included in purchasing programmes.

The supply-demand picture changes significantly depending on China and Russia. Excluding both suppliers creates a tighter market. Including them creates more apparent supply availability. This makes qualification and geopolitical acceptability just as important as physical capacity.

Some US ingot producers began qualifying Chinese titanium sponge in 2024. US imports from China rose to a 10-year high of 1,069t that year, showing that buyers were willing to test Chinese material when diversification pressure increased.

However, imports fell to 155t last year and no Chinese sponge imports were reported in January-February 2026. Tariff volatility, high mill inventories and policy uncertainty discouraged further purchasing.

This shows the main barrier for China aerospace-grade titanium sponge. Aerospace qualification requires multi-year commitments, stable documentation, repeatable quality and customer confidence. Buyers will not qualify a new source quickly if they fear trade rules could change again.

Titanium is exempt from the latest 10% US tariff, and overall duties have fallen back to 40% from 60%. But the rate itself is not the only issue. For aerospace buyers, volatility can be more damaging than the actual tariff level.

A mill can absorb or price a known tariff. It cannot easily build a long-term qualification strategy around unpredictable policy. This is why US buyers may limit Chinese sponge procurement to 15-20% of requirements, even if the material is technically acceptable.

Europe and Asia-Pacific may offer more immediate export channels. China already supplies aerospace-grade sponge to buyers in those regions, supporting shipments even when US demand is limited.

Capacity Expansion Could Change the Titanium Sponge Balance

China is preparing a large wave of aerospace-grade sponge capacity additions. Several major projects are scheduled to come on line soon, with combined new capacity of around 110,000 t/yr.

The scale is unprecedented. The planned additions exceed the combined existing capacity of Japan’s Toho and Osaka Titanium, Kazakhstan’s Ust-Kamenogorsk Titanium and Magnesium Plant, and Saudi Arabia’s ATTM.

China’s expansion is driven by two demand streams. Domestic aerospace demand is rising from the Comac C919 programme and military aircraft production. At the same time, producers expect higher export demand as western OEMs diversify away from Russia.

China’s titanium mill product demand already has a meaningful aerospace base. Aerospace applications accounted for about 20% of China’s titanium mill product demand in 2025, or roughly 31,280t. The chemicals industry remained the largest segment at 48%.

The domestic base gives Chinese sponge producers a stronger platform for quality improvement. Aerospace production experience matters because sponge qualification depends on consistency over time, not only nameplate capacity.

Still, some market participants question whether all new capacity can secure international aerospace qualification. New lines may need years of operating history before western melters and OEMs accept material for aircraft applications.

This is a critical distinction. China may have large physical capacity, but aerospace supply depends on approved, audited and repeatable production. Capacity alone does not guarantee market access.

Price competitiveness may support adoption. Domestic China aerospace-grade sponge prices have recently held firm at 55,000-57,000 yuan/t ex-works because of cost pressure. That remains competitive against some western supply routes, especially if buyers need alternative non-Russian material.

However, qualification is likely to split the market by application. Standard structural titanium grades are more likely to accept Chinese sponge over time. These grades support airframes and less critical structural components where qualification remains strict but less restrictive than engine-grade applications.

Premium-quality sponge will be harder to penetrate. Engine, landing-gear and other demanding aerospace uses require deeper qualification, tighter chemistry control and stronger confidence from prime contractors and tier suppliers.

Airbus’ titanium demand outlook adds another layer. The A350 is a high titanium-bearing platform, with titanium representing around 15% of aircraft weight. As A350 production rises toward 2027 and 2028, titanium demand visibility should improve across the supply chain.

That demand pull could make Chinese material more attractive if western supply tightens. But buyers will still balance cost, qualification, geopolitics and supply security.

For Chinese producers, the path is clear but difficult. They must prove consistent aerospace-grade quality, build long-term customer trust, manage export documentation and navigate trade policy risk.

For western OEMs, the decision is strategic. China aerospace-grade titanium sponge could reduce Russia exposure and improve supply flexibility. But it also introduces another geopolitical dependency at a time when aerospace and defence supply chains are under closer scrutiny.

The most likely outcome is partial adoption. Chinese sponge may become a growing supplement for standard-quality structural grades, while established Japanese, Kazakh, Saudi and other qualified suppliers remain central to premium aerospace applications.

The Metalnomist Commentary

China aerospace-grade titanium sponge will become harder for western aerospace supply chains to ignore as aircraft build rates rise and Russian exposure narrows. The decisive issue is not capacity, but whether Chinese producers can convert new output into trusted, qualified and politically acceptable supply.

Largo Vanadium Pentoxide Output Doubles as Brazil Ore Grades Improve

Largo

Largo vanadium pentoxide output more than doubled in the first quarter as higher-grade ore and steadier processing lifted production at the Maracás Menchen Mine in Brazil. The Canadian metals producer produced 2,616t of V2O5 during the quarter, up 101.7% from a year earlier.

The result placed Largo vanadium pentoxide output at the upper end of the company’s first-quarter expectations. It also showed a clear operational recovery from stronger ore availability and more consistent processing performance.

Largo vanadium pentoxide output is important because vanadium demand is gaining support from steelmaking, aerospace alloys, chemical catalysts and vanadium redox flow batteries. Higher Brazilian production adds supply at a time when energy storage demand is becoming a larger part of the vanadium market.

Higher Ore Volumes and Grades Lift Vanadium Production

Largo mined 852,046t of ore in the first quarter, up 90.8% from a year earlier. The effective ore grade rose to 0.48% V2O5 from 0.41% in 2025.

The higher ore grade improved plant feed quality and supported stronger recovery through the processing circuit. More consistent ore processing also helped the company convert higher mined volumes into finished vanadium pentoxide.

Sales volumes rose by nearly 4% on the year to 2,141t. Largo cited stronger vanadium demand and reduced US tariffs on Brazilian exports as key drivers behind the increase.

The company expects stronger sales in the second quarter. This reflects a lag in sales realisation and higher pricing achieved in the second half of the first quarter after the US tariff reduction.

For the vanadium market, the result points to improving supply from one of the main non-Chinese producers. That matters as buyers look for diversified sources of vanadium outside China’s large steel-linked production base.

Ilmenite and By-Products Add Resource Optionality

Largo also increased ilmenite production from January to April. Output reached about 11,500t, up 32.7% from a year earlier, while sales volumes were close to the same level.

Ilmenite provides Largo with another revenue stream linked to titanium feedstock markets. Titanium dioxide, welding consumables and titanium metal supply chains all depend on stable mineral feedstock availability.

The company also filed a request on 10 April to authorise production and sales of copper, platinum group metals, nickel and cobalt as by-products of its vanadium operations.

This step could improve resource recovery and strengthen project economics if the by-products can be recovered commercially. It would also align Largo with a wider industry trend toward extracting more value from complex ore bodies.

By-product recovery is increasingly important in critical minerals supply chains. Producers are looking to capture cobalt, nickel, PGMs and other metals where they already exist in operating systems, reducing waste and improving supply efficiency.

The Metalnomist Commentary

Largo’s first-quarter performance shows how quickly vanadium supply can improve when ore grade and plant consistency recover together. The by-product strategy could become equally important if it turns Maracás Menchen into a broader critical minerals platform.

China Vanadium Consumption Set to Rise in 2026 as VRFB Demand Accelerates

Vanadium

China vanadium consumption is expected to rise in 2026 as vanadium redox flow batteries, steelmaking, lithium iron phosphate cathode materials and denitration catalysts increase demand. The strongest growth is likely to come from VRFB-based energy storage, where projects are entering a more concentrated construction and commissioning phase.

China vanadium consumption reached 125,900t of vanadium pentoxide equivalent in 2025, up 6.1% from 2024. The market is now shifting from a steel-dominated structure toward a more diversified demand base.

China vanadium consumption still depends heavily on steel, but the share of energy storage has expanded quickly. Steel accounted for 70.9% of total demand in 2025, down from 87.9% in 2021. Energy storage rose to 20% of total use from only 4% over the same period.

This change is strategically important for vanadium producers. Demand is no longer driven only by construction steel, rebar and alloy additions. It is increasingly tied to long-duration energy storage, grid stability, batteries, catalysts and higher-value industrial applications.

VRFB Storage and Steel Demand Drive the 2026 Consumption Outlook

Vanadium demand from VRFB energy storage is expected to increase sharply in the second half of 2026. China’s National Development and Reform Commission and National Energy Administration issued a notice on 30 January to improve the generation-side capacity price mechanism, supporting longer-duration storage.

This policy direction matters because VRFB technology is better suited to long-duration applications than many short-duration battery systems. VRFBs offer long cycle life, high safety, deep-discharge capability and easier electrolyte reuse.

China’s VRFB installations in 2026 are preliminarily estimated at 4-5GWh. This forecast reflects projects already under construction and the availability of high-purity vanadium for electrolyte production.

That installation level would require around 32,000-40,000t of V2O5 equivalent. This would represent an increase of 8,000-16,000t from the previous year, making VRFBs the largest source of incremental vanadium demand.

The growth builds on rapid progress in 2025. VRFB projects with completed electrolyte filling totalled about 3,037.5MWh last year, up 1,027.3MWh from 2024. China’s cumulative VRFB installed capacity reached about 6,064.5MWh by the end of 2025, with an average duration of 4.12 hours.

The market is now moving from pilot-stage expansion to larger system deployment. As more long-duration storage projects reach construction and commissioning, vanadium electrolyte demand could become more predictable.

Steel remains the largest end-use sector. Vanadium demand from China’s steel industry is expected at 92,000-95,000t in 2026, up 3,000-6,000t from 2025.

The increase is tied to stronger demand from machinery, energy, shipbuilding, automotive and rail sectors. These ferro-vanadium end-use segments are expected to grow by around 1.2% in 2026.

The steel demand signal was already visible in the first quarter. Steel-sector vanadium consumption reached around 22,600t, up 1,800t from a year earlier.

Rebar could also provide support. Output of higher-grade steel reinforcement bar is expected to rise as infrastructure investment accelerates. Production licence rules for construction rebar took effect on 1 April, while quality traceability requirements have expanded.

These rules should raise the share of vanadium-nitrogen micro-alloyed hot-rolled rebar. That would support demand for vanadium-nitrogen alloy, especially in higher-strength construction products.

The 2025 steel data show a more complicated picture. Vanadium consumption in the steel sector reached around 89,300t, up 1,700t from 2024. However, vanadium-nitrogen alloy consumption fell by 3.8% to 36,690t because rebar’s share of vanadium use declined.

China’s rebar output fell to 186.3mn t in 2025, down 4.5% from a year earlier. This reduced vanadium demand from traditional construction steel.

Ferro-vanadium performed better. FeV50-equivalent consumption rose by 10.4% to around 39,985t, supported by stronger downstream output in several industrial sectors.

Automotive production reached 34.778mn units in 2025, up 9.8%. Civil steel shipbuilding totalled 52.295mn deadweight tonnes, up 18%. Excavator output rose by 17% to 379,643 units.

Machine tool output also increased. Metal-cutting machine tool production rose by 9.7%, while metal-forming machine tool output increased by 7.2%. These sectors helped offset weakness in rebar.

Vanadium intensity also rose. China’s vanadium use per tonne of crude steel increased to 51g of vanadium metal equivalent in 2025 from 48g in 2024. Rebar intensity edged up to 152.5g, while other steel products rose to 26.6g.

LFP cathode materials will provide another smaller but fast-growing demand source. Vanadium consumption from LFP cathodes is estimated at 2,000-2,500t in 2026, assuming a typical 0.2% V2O5 addition rate.

That would be up by 1,000-1,500t, representing growth of 100-150%. The base remains small, but the rate of increase is significant.

Denitration catalysts should also support demand. Chemical-sector vanadium consumption is expected at around 7,000t in 2026, up about 500t, or 7.7%. Demand will be supported by catalyst replacement, new coal-based thermal power projects and higher sulphuric acid output.

In 2025, chemical-sector vanadium use was around 6,500t, up 200t from 2024. Titanium-alloy-related consumption fell by around 400t, tracking weaker Chinese titanium product exports.

Supply Growth Remains Limited by Feedstock and Cost Pressure

China’s vanadium supply remains highly concentrated, but output growth is not straightforward. The country accounted for 68.8% of global vanadium capacity in 2025 and 72.4% of global production.

China’s total vanadium capacity reached 277,600t in 2025. Actual output was 163,900t, down 900t from 2024.

The production base is dominated by vanadium slag. Output from vanadium slag reached 141,300t in 2025, broadly unchanged from the previous year.

Some producers reduced supply. Xinjiang Da’an and Yunnan Yukun did not produce, cutting combined output by about 8,000t. Other producers, including Chengsteel, Desheng and Dagang, raised output by around 15%, offsetting part of the loss.

Stone-coal-based vanadium output fell more sharply. Production declined to 7,600t in 2025, down 2,600t from 2024, as lower prices left all stone-coal producers loss-making.

This route remains highly price-sensitive. At current price levels, only one large-scale stone-coal producer is operating, with output of around 100-120 t/month of ammonium metavanadate on a V2O5-equivalent basis.

A Shaanxi-based producer with capacity of 300-350 t/month has been suspended since early 2026 because of safety issues. It is unlikely to restart in the first half.

Vanadium flake prices rose to 83,000-84,000 yuan/t in March, prompting some stone-coal producers to consider restarts. However, current prices still appear insufficient to drive a large supply response.

Even when prices approached 110,000 yuan/t in 2023, stone-coal-based output only reached about 11,000t. This suggests that 2026 output growth from stone coal will likely remain limited.

Secondary resources are becoming more important. Vanadium output from spent catalysts and other secondary sources rose to 15,100t in 2025, up 1,900t from 2024.

This included about 6,700t from alumina by-product recovery, up around 1,700t. Output from spent catalysts and petroleum residues stayed broadly stable despite lower vanadium prices.

The reason is co-product economics. Vanadium is often recovered alongside molybdenum and tungsten from secondary feedstocks. Higher molybdenum and tungsten prices supported operating rates and helped keep secondary recovery viable.

Secondary output is expected to remain broadly unchanged in 2026. Feedstock availability is relatively stable, but China’s restrictions on solid-waste imports since 2017 limit the potential for major raw material growth.

Vanadium slag-based supply may edge higher in 2026, but feedstock constraints create uncertainty. Qinhuangdao Baigong completed a 10,000 t/yr V2O5 line in early 2026 and is ramping toward normal operations. Its 2026 output guidance is around 5,000t.

However, tighter domestic feedstock availability could offset this addition. Vanadium-titanium magnetite supply in the Panzhihua area is particularly constrained, potentially cutting output by about 4,500-5,000t of V2O5 equivalent.

Producers in Sichuan and Yunnan may need to source vanadium-titanium magnetite from the Chengde area or increase imports to keep output in line with 2025. A northeastern steelmaking-based vanadium producer has also reduced vanadium-titanium magnetite imports since December 2025.

This creates a cautious supply outlook. China’s vanadium output may edge higher in 2026, but the increase depends on whether new slag-based capacity can offset feedstock tightness and further weakness in stone-coal production.

The market therefore faces a potential demand-led tightening risk. VRFB demand is rising quickly, steel demand is improving modestly and smaller sectors are growing. Supply growth, meanwhile, remains constrained by feedstock, cost pressure and limited secondary resource availability.

For vanadium producers, the key opportunity lies in high-purity electrolyte-grade material. VRFB demand requires reliable vanadium quality, stable supply and long-term availability. Producers that can supply battery-grade vanadium will be better positioned than those focused only on metallurgical demand.

For steel users, the issue is price exposure. If VRFB demand absorbs more vanadium units, ferro-vanadium and vanadium-nitrogen alloy buyers could face stronger competition from the energy storage sector.

For energy storage developers, the issue is raw material security. VRFB growth depends on enough high-purity vanadium to support electrolyte production. Supply constraints could affect project economics if demand accelerates faster than conversion capacity.

The Metalnomist Commentary

China’s vanadium market is entering a new phase where steel remains the base, but VRFBs set the growth direction. The strategic tension in 2026 will be whether constrained supply can keep pace with energy storage demand without pricing steel users out of the market.

Shenghe Rare Earth Expansion Targets Higher Capacity and Overseas Resources

Shenghe Resources

Shenghe rare earth expansion plans for 2026-28 show the Chinese producer moving to strengthen its position across rare earth processing, recycling, overseas mining and heavy mineral supply. The company aims to raise revenue, expand capacity and secure more seaborne resource reserves over the next three years.

Shenghe rare earth expansion will be supported by stronger market conditions. The company expects 2025 profits of 790mn-910mn yuan, sharply higher than a year earlier, helped by higher rare earth prices and increased sales volumes.

Shenghe rare earth expansion also reflects China’s broader strategy to deepen control across rare earth value chains. The company already operates across oxide separation, metal processing and scrap recycling, while also extending into polishing powders, catalysts and magnetic materials.

Rare Earth Capacity Growth Anchors the 2026-28 Plan

Shenghe aims to lift rare earth oxide output capacity to more than 30,000 t/yr. It also plans to keep operating rates above 95% across its rare earth processing and recycling businesses.

The company plans to raise rare earth scrap recycling capacity to 15,000 t/yr during 2026-28. This is strategically important because recycling can improve feedstock security and reduce dependence on primary mined supply.

The Ngualla rare earth project in Tanzania is central to Shenghe’s overseas growth plan. Shenghe acquired the project in 2025, gaining access to 4.62mn t of rare earth oxide resources and 887,000t of rare earth oxide reserves.

Construction at Ngualla is targeted for completion in 2027, with commercial production expected in 2028. If delivered, the project could strengthen Shenghe’s access to non-domestic rare earth concentrate and support its long-term processing growth.

Heavy Minerals Add Zircon and Titanium Growth Platform

Shenghe is also expanding beyond rare earths into zircon-titanium heavy minerals. The company aims to increase zircon-titanium heavy mineral capacity to more than 1.5mn t/yr and raise domestic beneficiation plant utilisation above 80%.

Revenue from zirconium and titanium businesses is targeted to exceed 30% of total revenue. This gives Shenghe a broader industrial minerals platform linked to ceramics, refractories, titanium feedstocks, zirconium chemicals and mineral sands processing.

The company is advancing overseas heavy mineral projects in Tanzania and Madagascar. It plans to expand Nyati capacity to 300,000 t/yr in 2026 and 500,000 t/yr in 2028, while the Jiacheng plant in Madagascar is expected to produce its first heavy mineral concentrate in 2027 and reach 1mn t/yr by 2028.

Shenghe also plans to invest at least 3bn yuan over the next three years in overseas resources, domestic rare earth deep-processing, and zirconium and titanium businesses. This underlines its ambition to become a more integrated rare earth and heavy minerals supplier.

The Metalnomist Commentary

Shenghe’s plan shows that China’s rare earth leaders are no longer focused only on separation capacity. The next stage is securing overseas ores, scaling recycling, and building downstream materials exposure before global supply chains diversify further.

Zircon Sand Export Prices Rise as China Faces Lower Import Supply

Zircon Sand

Zircon sand export prices to China increased for second-quarter deliveries as major overseas mining firms responded to tighter supply, higher freight costs, and a stronger yuan against the US dollar. The move pushed Chinese buyers into a firmer import market after a weaker start to the year.

Zircon sand export prices rose as Australian heavy minerals producer Iluka Resources lifted its quarterly price for 66% zircon sand to $1,680-1,750/t cif China. That compared with $1,560-1,630/t cif China in the first quarter.

Zircon sand export prices also increased from Tronox. The US-based titanium dioxide and zircon producer raised its Australian-origin 66% zircon sand price by $100/t to $1,725-1,750/t cif China and lifted South African-origin material by the same amount to $1,710-1,730/t cif China.

Overseas Supply Cuts Tighten China’s Zircon Import Market

Lower supply has become the main support for higher zircon sand offers. Iluka said earlier this year that it plans to reduce 2026 output of zircon sand, zircon in concentrate, and synthetic rutile.

China’s import data also showed weaker availability. The country imported 120,604t of zircon sand and concentrates in February, down 12% from a year earlier and 45% from January.

South Africa, Nigeria, and Australia were China’s top three suppliers in February, shipping 44,753t, 21,062t, and 18,839t, respectively. Over January-February, China imported 342,177t of zircon sand and concentrate, down 25% from a year earlier.

Domestic Beneficiation Producers Raise Offers

Higher second-quarter export prices quickly fed into China’s domestic zircon market. Domestic 65% zircon sand prices rose to Yn9,400-9,600/t ex-works on 7 April, excluding 13% VAT, from Yn9,300-9,500/t on 31 March.

Zirconium-titanium beneficiation producers raised offers in response to higher overseas mining company prices. This shows how imported mineral sands pricing can quickly influence domestic processing margins and downstream cost expectations.

The price increase matters for ceramics, refractory materials, zirconium chemicals, foundry applications, and titanium-zirconium mineral processing chains. If import supply stays tight, Chinese buyers may face continued cost pressure through the second quarter.

The Metalnomist Commentary

The zircon market is showing a classic supply-led price recovery. China’s downstream demand may not be surging, but reduced overseas supply, freight costs, and firmer producer offers are enough to lift import and domestic prices.

Pangang Vanadium Output Fell as Titanium Dioxide Production Rose in 2025

Pangang Group

Pangang vanadium output declined slightly in 2025 as weak prices and oversupply continued to pressure China’s vanadium market. Pangang Group Vanadium and Titanium Resources, China’s largest vanadium producer, cut production by 0.4% on the year to 53,100t of vanadium pentoxide equivalent.

The lower Pangang vanadium output reflected a market still struggling to absorb available supply. China’s vanadium consumption increased in steel and vanadium redox flow batteries, but demand growth was not strong enough to remove the surplus.

Pangang’s overall revenue fell by 33% on the year to 8.89bn yuan, or about $1.29bn, as lower prices for both vanadium and titanium products reduced earnings momentum. The result shows how exposed integrated titanium-vanadium producers remain to price cycles across multiple industrial materials.

Vanadium Surplus Weighed on Prices Despite Battery Demand Growth

China’s vanadium market remained oversupplied in 2025 even though steel consumption and vanadium redox flow battery demand both increased. This limited the pricing benefit from battery-sector growth and kept pressure on producers.

Vanadium remains closely linked to the steel industry, where it is used to improve strength and performance in rebar and specialty steels. Battery demand is strategically important, but it has not yet become large enough to fully offset weakness or oversupply in the traditional steel-linked market.

The slight decline in Pangang vanadium output therefore signals production discipline rather than a structural shift away from vanadium. Producers are still waiting for stronger demand from energy storage to translate into tighter market fundamentals.

Titanium Dioxide Output Rose as Margins Remained Under Pressure

Pangang increased titanium dioxide production by 7.7% on the year to 272,500t in 2025. This included 69,200t produced through the chlorination process, which is typically used for higher-quality titanium dioxide products.

The company also produced 199,500t of sulphate titanium slag, up 9.8% from the previous year. Pangang has 1.8mn t/yr of titanium concentrate capacity, 220,000 t/yr of titanium slag capacity and 300,000 t/yr of titanium dioxide capacity, including 75,000 t/yr through chlorination.

China’s titanium dioxide sector remained difficult despite Pangang’s output growth. Domestic titanium dioxide output edged lower, feedstock titanium concentrate and sulphuric acid prices stayed elevated, and overseas anti-dumping measures weakened exports.

These pressures intensified competition and squeezed margins across the titanium dioxide industry. Pangang’s higher production therefore came against a challenging pricing and cost environment, not a broad market recovery.

The Metalnomist Commentary

Pangang’s 2025 results show that scale alone does not protect producers from weak vanadium and titanium pricing. The key question is whether battery storage demand and higher-value chlorination titanium dioxide can eventually offset oversupply and margin pressure in China’s mature industrial markets.

UK Titanium Dioxide Investigation Targets Chinese Rutile Pigment Imports

Tronox

UK titanium dioxide investigation activity is increasing as the Trade Remedies Authority opens an anti-dumping probe into rutile titanium dioxide imports from China. The investigation follows an application from Tronox Pigment UK, the UK subsidiary of US-based titanium dioxide producer Tronox.

The UK titanium dioxide investigation will examine rutile titanium dioxide imported in 2025. It will also review earlier data back to 2022 to assess whether Chinese imports caused injury to the domestic industry.

The case covers rutile titanium oxides in pigments and preparations based on rutile titanium dioxide, with a minimum titanium dioxide content of 80pc. Rutile titanium dioxide is widely used as a white pigment in coatings, plastics, paper, and consumer products.

Tronox Alleges Price Pressure and Industry Injury

Tronox claims that Chinese titanium dioxide is being dumped in the UK market. The company argues that these imports have caused price depression, reduced profitability, and weakened investment conditions for the UK titanium dioxide industry.

This matters because titanium dioxide is a core industrial pigment with broad downstream exposure. Construction coatings, packaging, plastics, paper, and consumer products all rely on stable pigment supply and pricing.

Tronox operates a titanium dioxide production plant in Stallingborough, north east Lincolnshire. The site, formerly owned by Cristal, is one of Tronox’s nine global titanium dioxide production plants and represents a key part of the UK’s remaining domestic pigment capacity.

Trade Measures Reflect Wider Pressure on Chinese Titanium Dioxide

The UK titanium dioxide investigation follows a wider international pattern. The EU, Eurasian Economic Commission, Brazil, and Saudi Arabia have already imposed anti-dumping measures on titanium dioxide from China.

The timing is also important for the UK market. Venator’s Greatham plant has closed, and the site is subject to a sale agreement with China’s LB Group, although regulatory approvals remain pending and the facility is still idled.

The Trade Remedies Authority will allow interested parties to register by 18 March. It will then assess the evidence, issue initial conclusions, and provide a final determination that could include anti-dumping duties. Any duties would reshape import economics and could support domestic pricing, but they may also affect downstream buyers that depend on competitively priced pigment.

The Metalnomist Commentary

The UK titanium dioxide case shows how trade policy is becoming central to downstream chemical and mineral processing competitiveness. The key question is whether anti-dumping action can preserve domestic pigment capacity without creating excessive cost pressure for coatings, plastics, and packaging users.

China Titanium Forging Project Marks a New Step in Downstream Capacity Growth

Sichuan Panjin

China titanium forging project development is entering a new phase as Sichuan Panjin moves toward first-phase start-up in Xichang. The company has completed construction of the initial 20,000 t/yr phase. It has also commissioned the vacuum consumable arc furnace and finished hot load testing. As a result, commercial operations could begin as early as March after final ramp-up work.

The project matters because it strengthens downstream titanium alloy processing, not just primary material supply. Sichuan Panjin will use titanium sponge from Pangang as feedstock. It will focus on titanium alloy melting and forging for higher-value industrial applications. Therefore, the China titanium forging project supports a broader shift from raw material output to processed titanium products.

This move also fits a wider industrial trend in China’s titanium sector. Producers increasingly want more control over conversion, quality, and regional supply chains. High-specification titanium alloys now matter more for aerospace, chemical processing, and new energy demand. Consequently, new forging capacity carries both industrial and strategic value.

Sichuan Panjin Titanium Alloys Project Expands Regional Processing Depth

Sichuan Panjin titanium alloys capacity is designed to close a long-standing processing gap in Liangshan’s vanadium-titanium industry. The project adds local melting and forging capability to an area known more for upstream resources. That improves industrial depth within western China. Meanwhile, it may reduce reliance on outside processors for downstream titanium conversion.

The first phase alone will add meaningful capacity to the regional market. Once fully ramped, it will provide 20,000 t/yr of titanium and titanium alloy melting and forging capability. The second phase is scheduled to begin in the second half of this year. It is targeted for completion in 2027. Therefore, the full project could become a sizeable new pillar in western China titanium supply.

Ownership structure also gives the project industrial weight. Sichuan Panjin is a joint venture between Pangang Xichang Xingangye and Henan Zhongyuan Titanium. Zhongyuan Titanium, controlled by stainless steel producer Yongjin, holds a 66pc stake. That combination links upstream feedstock access with downstream alloy processing ambition.

Western China Titanium Supply Could Gain More Strategic Relevance

Western China titanium supply could become more competitive as this project moves into production. Market participants expect the new facility to strengthen supply for high-specification titanium alloys. Those grades are increasingly important in aerospace, chemical equipment, and emerging energy systems. As a result, the plant may improve regional responsiveness to higher-end demand.

The project’s scale also signals a value-upgrading strategy rather than a simple capacity addition. Once both phases are completed, total capacity will reach 40,000 t/yr. Annual output value could rise to as much as Yn3bn. That suggests the company is targeting margin improvement through deeper processing and product quality.

For the broader titanium market, this is a notable development. New sponge capacity alone does not create a complete supply chain. Melting, forging, and alloy qualification determine real commercial value. Therefore, the China titanium forging project reflects a more mature stage of industrial expansion.

The Metalnomist Commentary

This project shows how China’s titanium sector is pushing further downstream to capture more value. Capacity growth now matters most where it improves processing depth and alloy quality. If execution stays on track, western China could gain a stronger role in premium titanium supply.

 

China chlorination titanium dioxide expansion lifts Tianyuan to 200,000 t/yr

Titanium Dioxide

China chlorination titanium dioxide expansion will accelerate after Yibin Tianyuan Haifeng Hetai announced a new 100,000 t/yr chloride-process plant in Jiang’an county, Yibin, Sichuan. China chlorination titanium dioxide expansion will double the subsidiary’s total titanium dioxide capacity to 200,000 t/yr from 100,000 t/yr. As a result, China chlorination titanium dioxide expansion strengthens the country’s push toward cleaner TiO₂ production.

Yibin Tianyuan will invest 1.48bn yuan in the project and expects a two-year construction period. The company also projects a payback period of about 6.3 years, excluding construction time. Meanwhile, Yibin Tianyuan’s operating base spans chloride-process titanium dioxide and lithium iron phosphate, linking pigment supply chains with the battery materials ecosystem.

Why chloride-process TiO₂ keeps gaining ground in China

Chloride-process TiO₂ increasingly leads new capacity decisions because it supports tighter environmental performance. Producers also use the technology to align with low-carbon and cleaner industrial targets. However, the transition is not linear because feedstock quality, capex intensity, and operating know-how still constrain fast adoption.

China’s biggest TiO₂ groups continue to expand chloride capacity to upgrade their portfolios. LB Group, Citic Titanium, Pangang Vanadium and Titanium, Lubei Chemical, and Yibin Tianyuan form the core group using this advanced route. Therefore, Tianyuan’s decision fits a broader capital cycle that prioritizes technology shifts over incremental sulphate-style expansions.

What Tianyuan’s new plant means for market structure and pricing

A 100,000 t/yr addition is large enough to influence regional competition, especially if ramp-up is smooth. The move can improve product consistency and help Tianyuan target higher-value customer segments. Meanwhile, the market will watch whether the new capacity arrives into stable pigment demand or a weaker cycle.

China produced 663,000 tonnes of chloride-process TiO₂ in 2024, down 4.2% year on year, and this represented 14% of national TiO₂ output. That share shows chloride still has room to grow, even as producers expand. Therefore, the next competitive edge will come from integration, energy efficiency, and steady feedstock sourcing.

The Metalnomist Commentary

This project signals that Chinese TiO₂ producers still believe technology upgrades will protect margins. However, new chloride capacity can pressure prices if demand stays soft during ramp-up. The winners will be operators who pair scale with disciplined commissioning and differentiated grades.