China's Titanium Sponge Production to See Significant Expansion Amid Demand Growth

China's Titanium Sponge

China's titanium sponge production capacity is set to experience a major boost, potentially reaching between 300,000 and 500,000 tonnes per year over the next three to five years, according to An Zhongsheng, secretary-general of the China Nonferrous Metals Industry Association's titanium zirconium and hafnium branch (CNIA-Ti). This expansion is expected to be driven by increased demand across various sectors including aerospace, marine engineering, chemical production, computer, communication and consumer electronics (3C), daily necessities, and air conditioning, as reported at the China and CIS Titanium Industry Development Forum held in Xi'an, Shaanxi province.

Global civil aviation demand, recovering from the impacts of the Covid-19 pandemic, has put strain on aviation-grade titanium sponge supplies. An emphasized that while the aerospace industry is recovering, industrial sectors are propelling China's titanium market with consistent growth in recent years.

Currently, China's titanium sponge production capacity hovers around 300,000 tonnes per year. In the broader market, titanium's growing use in civilian products is anticipated to be a significant growth catalyst for the Chinese titanium industry.

Although global demand for titanium in the medical industry has surged, Chinese demand in this sector has been hampered by healthcare reforms promoting the use of cost-effective materials. Despite this, prices for titanium sponge are projected to remain relatively stable, enhancing its appeal across a range of applications. An Zhongsheng reassured industry stakeholders that China’s domestic supply of titanium sponge will meet future demands due to planned capacity expansions.

The anticipated rapid growth in titanium sponge production marks a transition for titanium from a rare metal to a more commonly used material, according to An. In the first half of this year, China produced 123,500 tonnes of titanium sponge, according to CNIA-Ti data.

Nevertheless, China continues to rely on imports for approximately 35-40% of its titanium ores and concentrates, reflecting its position in the global supply chain. Last year, global production of titanium ore and concentrate amounted to 8.75 million tonnes (t) of titanium dioxide equivalent, with China contributing 37%, followed by Mozambique (18%), South Africa (11%), and Canada (6%).

In the realm of titanium dioxide production, China led with 55% of global output in 2023, maintaining growth through domestic capacity expansions. Additionally, the world's titanium sponge production rose by 29% to 347,000 tonnes in 2023, with China’s output surging from a 25% share in 2022 to a dominant 63%. Russia, Japan, and Saudi Arabia also witnessed increases in their titanium sponge output, while Ukraine reported zero production.

For titanium mill products, global production in 2023 reached 248,000 tonnes, with China accounting for a commanding 64%, trailed by the United States (14%), Russia (13%), Japan (6%), and Europe (3%).

China’s Titanium Sponge Exports Surge While Imports Decline in 2023

Titanium Sponge

China’s Titanium sponge exports saw a significant increase during January-September 2023, driven by heightened demand from countries like the United States, Japan, and South Korea amid the ongoing Russia-Ukraine conflict. However, imports into China decreased due to ample domestic availability and declining local prices, which remained highly competitive compared to international markets.

Export Trends: Rising Demand from the U.S. and Japan

During the first nine months of 2023, China exported 4,362 tons of Titanium sponge, reflecting a 24% increase compared to the 3,516 tons shipped during the same period in 2022, according to customs data. This surge was largely fueled by reduced global spot supplies following the start of the Russia-Ukraine conflict in February 2022. Russia and Ukraine are significant producers of Titanium sponge, alongside other nations such as Kazakhstan, Saudi Arabia, and Japan.

In September 2023, exports totaled 567 tons, a 38% rise from the 411 tons shipped in September 2022. However, this was a 24% decline from the 744 tons exported in August. Key export destinations included Japan (224 tons), the United States (100 tons), and Sweden (60 tons). A notable contract by a Yunnan-based producer to supply 1,000 tons of 99.7% sponge to a U.S. buyer, with shipments scheduled for May 2025, highlights China’s growing footprint in the global Titanium sponge market.

Import Decline: Sufficient Domestic Supply and Competitive Pricing

China’s Titanium sponge imports fell by 25%, with only 100.4 tons brought in during January-September 2023, compared to 133.7 tons in the same period in 2022. The decline is attributed to adequate domestic availability and weaker prices in the local market. The average price for 99.7% grade Titanium sponge in China during the period was ¥50,712 per ton (approximately $7.10 per kg), significantly lower than the European average of $11.45 per kg.

Domestic Market Stability Amid Thinner Margins

Despite rising exports, China’s domestic Titanium sponge market remains stable, though profit margins have thinned, with some producers operating at a loss. Prices for 99.7% grade sponge as of early November were assessed at ¥43,000-44,000 per ton ex-works, the lowest levels since February 2016. Similarly, 99.6% grade sponge was priced at ¥42,000-43,000 per ton ex-works.

Producers in regions such as Panzhihua have also shifted focus to export markets, including India and Europe, to compensate for declining domestic profitability. Notably, the continued suspension of production by Ukraine’s Zaporozhe Titanium and Magnesium (ZTMC) since February 2022 has further solidified China’s position as a key supplier to international markets.

Outlook: Competitive Advantage Amid Global Supply Constraints

China’s robust export growth underscores its critical role in the global Titanium sponge market, especially in light of supply disruptions caused by geopolitical factors. Competitive pricing and stable domestic production ensure that China remains a leading supplier, even as other producers face challenges in meeting global demand.

China's Rising Titanium Sponge Export and the Future of Aerospace Supply Chains

China's Titanium Sponge

A Surplus That Could Fill a Global Gap

With certified titanium sponge supplies projected to hit a deficit in the next four years, China’s output capabilities become increasingly relevant. While traditional producers like Japan, Saudi Arabia, and Kazakhstan near full capacity, major aerospace companies such as Airbus and Safran are considering alternatives to mitigate supply risks. China produced 218,000 tons of titanium sponge in 2023, marking the ninth consecutive year of production growth, largely due to domestic oversupply, according to the China Nonferrous Metals Industry Association.

However, introducing Chinese sponge to critical applications is no simple task. Certification timelines for standard quality (SQ) and premium quality (PQ) sponge can extend from three to over five years. The long lead time is essential for parts such as disks and blades in commercial aero engines, where safety standards demand rigorous checks for oxygen and nitrogen contamination. “China’s significant production capabilities are promising, but certification processes and qualification timelines are a major barrier,” said Marty Pike, vice president of global commercial strategy at U.S. metals producer ATI, at a recent titanium industry event in Texas.

Geopolitical Concerns and Legislative Guardrails

While Airbus has signaled openness to exploring Chinese titanium sponge, the decision ultimately lies with engine manufacturers. Other industry leaders, however, cite concerns over potential sanctions that may result from China’s involvement, given rising Asia-Pacific tensions. Any U.S. or EU industries reliant on Chinese titanium sponge could face supply chain vulnerabilities if diplomatic relations falter.

U.S. imports of Chinese titanium sponge are rising despite tariffs, driven by cost pressures. The average price for Chinese imports to the U.S. is notably lower than that from Japan, even after duties, offering an attractive price point. A recent bill, the Securing America’s Titanium Act, seeks to balance this by waiving the standard 15% tariff on titanium sponge but maintaining a 25% tariff on Chinese imports. The proposed legislation also aims to monitor foreign influence over the U.S. supply chain, underscoring the careful stance lawmakers are taking toward titanium imports.

EU and Future Outlook

Europe's titanium sponge import dynamics are less transparent due to limited reporting and autonomous tariff suspensions. Unlike the U.S., EU markets face no duty on imports, making it an attractive market for Chinese exporters. While the aerospace sector remains cautious, other industries such as medical and industrial may more readily accept Chinese sponge as they seek cost-effective solutions.

As the titanium market evolves, balancing supply demands, certification processes, and geopolitical risks will shape the future of titanium sponge in aerospace, with China poised as a powerful, if complex, player in the unfolding narrative.

China's Titanium Sponge Exports Rise While Imports Decline in 2024

Titanium Sponge

Increased Demand from Key Markets Drives Export Growth

China's titanium sponge exports rose in 2024 due to increased demand from South Korea, the US, and Japan. According to customs data, exports reached 5,993 tonnes, marking a 2.7% increase from 2023 levels. In December alone, exports surged to 752 tonnes, more than doubling from 359 tonnes a year earlier. South Korea, Japan, and Taiwan emerged as the primary buyers, importing 191 tonnes, 290 tonnes, and 80 tonnes, respectively.

South Korea’s imports of Chinese titanium sponge tripled in 2024, reaching 1,565 tonnes compared to 515 tonnes in 2023. Japan’s purchases more than doubled to 1,162 tonnes, while the US saw an almost eight-fold increase, acquiring 1,098 tonnes.

Declining Imports Due to Domestic Supply and Price Differentials

China’s titanium sponge imports fell by 24% in 2024, dropping to 101.9 tonnes from 133.8 tonnes in 2023. The decrease was attributed to sufficient domestic supply and high international prices. In December, China imported only 0.3 tonnes, contrasting with zero imports recorded in November 2024 and December 2023.

The average price for 99.7% grade titanium sponge in China stood at 49,666 yuan ($6,841) per tonne in 2024, or $6.86 per kilogram. In comparison, European titanium sponge prices averaged $11.50 per kilogram, making imports less economically viable for Chinese buyers.

BaoTi Boosts Titanium Mill Products Output and Sales in 2024

BaoTi

Strong Demand from 3C, Aerospace, and Energy Sectors Drives Growth

China’s largest titanium producer, BaoTi, significantly increased its titanium mill products output in 2024. The company responded to higher demand from the computer, communication and consumer electronics (3C), aerospace, power, and shipbuilding sectors.

BaoTi produced 33,600 tons of titanium mill products last year, marking a 12% rise from 30,000 tons in 2023. The company plans further growth, targeting 43,000 tons of production by 2025.

Sales also grew steadily. BaoTi sold 31,300 tons of titanium mill products in 2024, a 6.5% increase from 29,400 tons the previous year.

Aerospace Leads Titanium Consumption Growth

China’s total consumption of titanium mill products reached 151,000 tons in 2024, up 1.6% compared to 2023. The aerospace sector posted the largest growth, consuming 32,193 tons, up by 2,816 tons from a year earlier. The power industry followed, with a 1,364-ton increase to 8,453 tons, driven by the new energy sector’s development.

Meanwhile, the 3C industry saw a 10% rise in titanium usage, reaching 11,000 tons in 2024. Domestic producers secured major orders from companies like Apple, Samsung, and Huawei, boosting demand.

The shipbuilding sector also expanded its titanium consumption by 1,191 tons, totaling 4,933 tons last year.

Global Titanium Output Rises Alongside China's Growth

China’s 32 major titanium manufacturers produced 172,000 tons of mill products in 2024, up 8.1% from 2023. Globally, titanium mill product output climbed by 8%, reaching 260,000 tons according to preliminary estimates.

Organizations such as CNIA-Ti, the CIS Titanium Association, and the Japan Titanium Association contributed to these global estimates. Stay tuned with The Metalnomist for more updates on global titanium market dynamics.

China Raises Overseas Titanium Sponge Supply Amid Oversupply Pressure

China Titanium Sponge

Chinese Titanium Sponge Exports Surge in Response to Oversupply

Chinese titanium sponge producers are rapidly increasing exports to manage growing domestic oversupply. China has dominated global titanium sponge production since 2020, driven by aggressive capacity expansion and high revenues. In 2023, China’s top nine producers delivered 247,400t, a 13.5pc rise year-on-year, marking the ninth straight annual increase.

Export Volumes Climb as Global Buyers Shift from Ukraine and Japan

China exported 1,079t of titanium sponge in January–February 2025, up 29pc year-on-year, customs data shows. Demand rose sharply after Ukraine’s Zaporozhe plant shut down and Japanese suppliers diverted output to Europe and the U.S. South Korea, Japan, and the U.S. became China’s top three buyers in 2024, collectively absorbing over 3,800t.

Tariffs and Caution Temper U.S. and Japanese Import Growth

U.S. imports dropped 35pc in early 2025 due to new Trump-era tariffs, despite 2024 volumes surging nearly 8-fold. Japan doubled its imports to 1,162t last year, likely for quality testing and low-cost applications, not aerospace-grade use. Meanwhile, Japanese producers remain dominant domestically with a 65,000 t/yr capacity and cautious optimism about competition.

The Metalnomist Commentary

China’s titanium sponge industry now walks a fine line between growing export momentum and long-term structural oversupply. While quality improvements have opened doors to Japan and the U.S., geopolitical barriers like tariffs and technical certification hurdles will continue to shape the pace of China's global expansion. Still, the supply shift signals a major realignment in the global titanium value chain.

China’s LB Group Increases First-Half Titanium Dioxide Output

China’s LB Group

China’s LB Group, the largest producer of titanium dioxide in the country, has ramped up its production in the first half of 2024 by increasing its capacity utilization to capture more market share. The company, which has a combined annual capacity of 1.51 million tonnes, produced 649,600 tonnes of titanium dioxide during the period, reflecting a 9.7% increase from a year earlier.

Breakdown of Production Processes

Of the total output, 453,700 tonnes were produced using the sulfuric acid process, and 195,900 tonnes via the chlorination process. While production through the sulfuric acid process rose by 6.2%, production through the chlorination process saw a slight decline of 1.7%.

LB Group also produced 33,100 tonnes of titanium sponge, a 29% increase from last year, with sales of 30,800 tonnes, up by 60%. Titanium concentrate production surged by 73% to 1.04 million tonnes, though the company uses all of it internally for producing titanium dioxide and sponge.

During the first half of 2024, LB sold 599,600 tonnes of titanium dioxide, up by 3.7% from the same period last year. Sales of sulfuric acid-based products increased, while chlorination-based products slightly decreased.

China’s titanium dioxide exports also grew, reaching 1.13 million tonnes from January to July, a 14% increase from the same period in 2023. July exports totaled 159,688 tonnes, marking an 18% increase from the previous year, though a 9.5% decline from June’s figures.

Iron Ore Output Declines

While titanium production surged, LB Group’s iron ore concentrate output dropped. The company produced 1.55 million tonnes of iron ore concentrate, down by 16% year-on-year, with sales also falling by 39% to 1.55 million tonnes.

China's Magnesium Sector Faces Oversupply and Price Challenges Despite Rising Output

China's Magnesium

China’s magnesium industry, which accounts for a staggering 83% of the world’s magnesium production, is grappling with challenges of oversupply and volatile prices, according to insights shared at the 27th annual conference of the China Magnesium Association (CMA) held in Xi'an.

Decade-Long Capacity and Utilization Issues

Over the past decade, China’s magnesium production capacity has ranged between 1.3 million and 1.5 million tonnes per year (t/yr). However, actual output has lagged behind at 800,000 to 1 million t/yr, resulting in an average utilization rate of just 63%, according to data from the China Nonferrous Metals Industry Association (CNMA).

Dependence on Traditional Sectors

The sector’s primary consumption is still tied to traditional industries like aluminium alloys, steel, and titanium sponge. Attempts to diversify into new applications, such as magnesium alloy construction sheets, consumer electronics, and new energy vehicles, have been slow. This limited innovation has contributed to an oversupply and pushed magnesium prices to near production costs.

Shifting Trends in Titanium Sponge Production

The use of magnesium in titanium sponge production has declined due to its environmental impact and price volatility. According to Jiang Baowei, lead engineer at Pangang Vanadium and Titanium Resources, many producers now use in-house magnesium obtained through electrolysis of titanium tetrachloride residue, reducing environmental pollution and stabilizing costs. In 2023, China’s titanium sponge production capacity reached 220,000 t/yr, supported by 250,000 t/yr of in-house electrolytic magnesium production.

Rising Production Amid Challenges

Despite these hurdles, China’s magnesium production rose to 702,900 tonnes during January-September 2024, an 18% year-on-year increase, fueled by resumed production in Shaanxi, the country’s largest magnesium-producing region. Output in Shaanxi grew by 14%, while neighboring Shanxi saw a 10% rise. Shaanxi alone houses 50 producers with a combined capacity of 678,000 t/yr, including 34 producers in Fugu County.

CMA’s Call to Action

Ge Honglin, CNMA president, urged the industry to emphasize magnesium’s benefits as a light structural metal and explore emerging markets like hydrogen storage and new energy vehicles. He also called for price stabilization to ensure affordability and reduce market volatility.

Sustainable Production Gains

The industry has made strides in energy efficiency, reducing the energy required to produce 1 tonne of magnesium from 5.2 tonnes of standard coal in 2012 to just 4 tonnes in 2023. Over the same period, magnesium consumption in structural materials more than doubled to 192,100 tonnes, contributing to a sharp rise in overall consumption, up by 76% since 2012.

China’s magnesium sector continues to grow in global prominence, but it faces an urgent need to diversify its applications, reduce environmental impacts, and stabilize pricing to maintain its leadership in the global market.

Chinese Titanium Sponge Prices Plummet Amid Surging Production and Weak Demand

China titanium sponge exports 2020-24 (t)

Chinese titanium sponge prices have dropped to their lowest levels in eight years as the market faces a combination of increased production and waning demand. As of August 1, prices for 99.7% grade titanium sponge were assessed at 49,000-50,000 yuan per ton ($6.89-7.03 per kilogram), marking the lowest point since November 2016 and a decline of 4.8% from late May.

The fall in prices is largely attributed to a surge in output from China's 12 major titanium sponge producers, whose combined production reached 141,600 tons between January and July, a 15% increase from the same period last year. This increase follows the expansion of production capacities, with overall sponge output capacity rising by 23% in 2023 to 320,000 tons per year.

Notably, state-controlled Pangang Titanium Industry and LB Group, the world's largest titanium dioxide producer, have been key players in this expansion. Pangang increased capacity at its Sichuan province facility by adding a 35,000 tons per year production line in September 2023, while LB Group’s subsidiary, Yunnan National Titanium Metal (Guotai), reached its design capacity of 80,000 tons per year at its Xinli plant, making it China's largest sponge producer.

Despite these production increases, the market remains oversupplied, with downstream sectors such as the chemical, military, and civil industries showing sluggish demand. A major titanium mill in Baoji reportedly purchased sponge at 48,000 yuan per ton in late July, anticipating further price drops due to continued weak demand and excessive supply.

Producers have attempted to cut prices to stimulate sales but have struggled to secure large orders. Many buyers are holding off on restocking, expecting prices to decline further in the near term. Analysts suggest that if spot prices fall to 46,000-47,000 yuan per ton, major producers may be forced to cut output.

Exports have provided little relief to the domestic market. China's titanium sponge exports reached 2,426 tons during the first half of 2024, accounting for just 2% of domestic production. While exports nearly doubled year-on-year in June, the overall volume remains insufficient to balance the oversupplied domestic market.

Global Aerospace-Grade Titanium Sponge Supply Expands Despite Japanese Slowdown

Titanium Sponge

Higher utilization in Kazakhstan and Saudi Arabia offsets Japan’s decline as China eyes industrial market growth

Global Titanium Sponge Output Rises in 2024

Titanium sponge production from aerospace-approved suppliers grew in 2024, reaching 89,000 metric tons — a 6% increase from 2023. This rise came despite a production decline in Japan, which was balanced by higher capacity utilization in Kazakhstan and Saudi Arabia. The U.S. Geological Survey (USGS) and industry data confirm this upward trend, driven primarily by strategic expansion in the Middle East and Central Asia.

Japan's production fell to 55,000t in 2024, down from 57,000t in 2023. Inventory adjustments by domestic aerospace consumers were the primary cause. In contrast, Saudi Arabia's AMIC-Toho Titanium Metal ramped up output to 15,000t, nearing its 15,600 t/year capacity. Kazakhstan also maintained high utilization levels, strengthening its role as a stable sponge supplier for critical aerospace applications.

China Expands Industrial Market Footprint

While China’s titanium sponge remains unqualified for aerospace, its influence in industrial markets surged in 2024. Chinese production held steady at 220,000t, but capacity climbed to as much as 320,000 t/year, according to market participants. Japan’s imports of unwrought titanium from China rose sharply — from 451t in 2023 to 1,198t in 2024 — suggesting increased acceptance of Chinese sponge and ingot in industrial-grade production.

China’s growing presence is reshaping competition, particularly in Japan, where CP-grade metal demand dominates. Although Chinese sponge lacks aerospace certification, Metalnomist understands that select U.S. buyers are testing small volumes for future qualification — despite ongoing tariff uncertainties. The U.S. imported 1,068t of sponge from China in 2024, up from 154t the year before.

U.S. Aerospace Demand Softens Amid Boeing Constraints

U.S. titanium sponge imports from Japan declined in 2024 to 27,692t, down from 31,387t in 2023. This contraction reflects softer demand from American ingot melters due to lower-than-expected build rates for Boeing’s 787 Dreamliner and 737 Max programs. Persistent supply chain challenges further impacted intake, signaling a temporary slowdown in titanium conversion activity for aerospace.

Despite this, global titanium sponge markets remain dynamic. Kazakhstan and Saudi Arabia continue to play a vital role in balancing supply, while China's push into the industrial sector could eventually redefine global sourcing strategies.

Chinese Firms to Build High-End Titanium Alloy Plant in Sichuan Province

In a significant move to bolster China's titanium industry, Henan Central Source Titanium Industry is teaming up with state-owned Pangang Group Xichang New Steel to develop a cutting-edge titanium mill and titanium alloy material project in Xichang city, Sichuan province. This joint venture, named Sichuan Panjin New Material, will see Henan Central Source holding a majority 66% stake, with Pangang Group Xichang New Steel retaining the remaining 34%.

The ambitious project, aimed at producing high-end titanium alloy materials, is set to have an annual production capacity of 40,000 tons. With a total investment of approximately 700 million yuan ($97 million), the project will be executed in two phases. The first phase, designed to achieve a production capacity of 20,000 tons per year, is expected to be completed within 12 months. The second phase, mirroring the capacity and timeframe of the first, will follow suit. Specific details regarding the construction timeline and launch dates for each phase remain undisclosed by the partners.

Henan Central Source, established in January 2023, has a registered capital of 250 million yuan. The company is supported by key stakeholders, including Chinese stainless steel producer Zhejiang Yongjin Metal Technology with a 51% share, LB Group with 20%, Guizhou Aviation Technical Development with 10%, and Huihong Taijin Science and Technology holding 19%.

This partnership represents a strategic effort to enhance the production capabilities and global competitiveness of China’s titanium industry, addressing the growing demand for high-quality titanium alloy materials in various high-tech sectors.

China's Titanium Sponge Export Surge Amid Global Supply Crunch

China’s titanium sponge exports experienced a significant increase from January to July 2024, with a rise of 6% to 3,052 tons compared to the previous year. This uptick reflects heightened international demand driven by the ongoing Russia-Ukraine conflict, which has disrupted global titanium sponge supply.

Export Trends and Market Impact

During July alone, China exported 626 tons of titanium sponge, a notable 59% increase from the previous year, although slightly lower than June’s figures. Major importers included the US, Japan, and Taiwan, reflecting sustained global interest. Conversely, China's imports of titanium sponge plummeted by 99% to just 0.20 tons due to high international prices and adequate domestic supply. Domestic prices for titanium sponges have remained stable, with minimal fluctuations despite global market volatility.

China’s TiO2 Capacity Utilization Set to Fall in 2025 Amid Sluggish Demand and Export Pressures

China's Titanium Dioxide

China, the world's leading producer of titanium dioxide (TiO2), is set to experience a fall in capacity utilization rates by 2025. This decline is attributed to an expected rise in production capacity, muted demand from downstream sectors, and mounting export pressure. According to market estimates, China’s TiO2 capacity utilization is projected to decrease by 2 percentage points, reaching 68% in 2025 from 2024’s 70%.

Capacity Expansions and Production Growth

In 2024, China will continue its expansion of TiO2 production capacity with several new facilities coming online. Companies like Pangang, Inner Mongolia Guocheng, Fujian Kuncai, and Guangdong Huiyun are set to add a combined 700,000 tons per year (t/yr) of new capacity. This expansion will increase the total production capacity from 5.87 million t/yr in 2023 to 6.57 million t/yr by the end of 2024.

In 2025, further expansions will continue. Shandong Jinhai, Sichuan Yibin Tianyuan, and Shandong Xianghai Titanium Resources Technology are among the companies investing in additional capacity. These new projects will add at least 360,000 t/yr of TiO2 capacity, bringing China's dominance in the global market even higher. Despite these investments, the rising supply could outpace domestic demand.

Muted Domestic Demand

The domestic demand for TiO2, particularly from the painting industry—China's largest consumer of TiO2—has been weakening in recent years. The painting sector accounts for approximately 60% of China's TiO2 consumption, with architectural coatings being the largest segment. However, the slowdown in China’s real estate industry, which directly affects the demand for architectural coatings, is contributing to a reduction in TiO2 consumption.

China’s real estate sector has faced substantial challenges since 2022, with significant declines in investment and completed residential areas. As a result, TiO2 demand from this sector is expected to remain sluggish, further pressuring the TiO2 market in the coming years.

Export Pressure and Trade Restrictions

China’s TiO2 exports have been increasing, with a marked rise in 2023, which accounted for 39.5% of the country’s total production. However, this surge in exports has led to anti-dumping investigations in multiple regions, including the European Union, India, Brazil, and Saudi Arabia. The European Union, in particular, has imposed final anti-dumping duties on Chinese TiO2 imports, which will take effect from January 2025.

These trade restrictions could impact the international demand for Chinese TiO2, as countries with ongoing anti-dumping measures are likely to see a reduction in TiO2 imports from China. Meanwhile, competitors in other countries, such as Tronox, are recovering from low utilization rates and are expected to increase their production, potentially reducing China’s share in the global TiO2 market.

Outlook for 2025 and Beyond

The overall outlook for China’s TiO2 market in 2025 is uncertain. While capacity expansions will continue, weak domestic demand and export restrictions will likely make it challenging for the country to sustain the high output levels seen in previous years. Market participants predict that the growth in output will slow down, and capacity utilization rates will continue to decline as China faces both domestic and international pressures.

As China grapples with a combination of weaker demand and export constraints, it is expected that the TiO2 industry will have to adjust to a new normal of reduced growth in 2025.

Titanium Exempted from US Tariffs: Aerospace Industry Impact Remains Unclear

Titanium

New US Tariff Exemptions for Titanium Could Affect the Aerospace Supply Chain

On April 2, 2025, US President Donald Trump announced new tariffs on several foreign imports, including an exemption for titanium, titanium scrap, and ferro-titanium. While the exemption helps protect titanium trade, the broader implications for the aerospace industry remain uncertain.

Titanium Exemption and Its Effects

The US tariffs announced include a list of exemptions, with titanium in its various forms being spared. However, other metals like hafnium, molybdenum, vanadium, nickel scrap, and aluminum scrap were not exempted. The new tariff scheme does not affect pre-existing duties on Chinese titanium products, including a 20% duty on titanium products from China, which has been in place since March 4, 2025. Despite the exemption for certain forms of titanium, Chinese titanium sponge imports will still be subject to a 60% duty, which remains unchanged.

Additionally, imports of unwrought titanium from Japan, Kazakhstan, and Saudi Arabia will still face a 15% tariff, though efforts to remove this tariff for sponge imports are underway. For US titanium scrap imports, particularly from the EU and UK, which make up over half of the US intake, the tariff exemption is crucial. Without it, US scrap dealers, processors, and consumers would face substantial challenges, as the US does not produce enough vacuum-grade titanium scrap domestically to meet demand.

Aerospace Industry and Supply Chain Impact

While the titanium exemption provides relief for many manufacturers, the broader impact of the tariffs on the aerospace industry is still unclear. Aerospace manufacturers are uncertain about the tariff's effects on finished parts, components, and engines, particularly regarding supply chains that involve cross-border production of engine parts like the Leap-1A and Leap-1B engines for the A320neo and Boeing 737 Max.

Canada and Mexico were excluded from the new US tariffs, alleviating concerns for companies like Bombardier, Airbus, RTX, and Heroux-Devtek, which operate in those regions. Still, some titanium producers believe the situation could change rapidly, as it is difficult to define the boundaries between parts made from titanium and assembled components that use other materials, such as nickel-based alloys or aluminum.

China’s 34% Tariff on US Exports

In response to US tariffs, China has imposed a 34% tariff on all US imports, which will affect titanium imports from the US. Despite importing limited amounts of titanium from the US, China still relies on US imports for critical aerospace components, including parts for its C919 aircraft. The C919 uses the CFM Leap-1C engine, which is assembled in both the US and France.

Titanium Exempt from New US Reciprocal Tariffs Amid Broader Aerospace Uncertainty

Titanium Ingot

Titanium Scrap and Alloys Dodge Latest Tariff Wave, but Market Unease Persists

Titanium and its derivatives, including scrap and ferro-titanium, were notably exempted from the latest round of US reciprocal tariffs announced on April 2. Annex II of President Donald Trump’s executive order outlined the list of exemptions, sparing various nonferrous metals, including titanium, from additional duties.

However, existing tariffs on titanium products remain unchanged. These include a 60% duty on Chinese titanium sponge and a 15% duty on unwrought titanium from Japan, Kazakhstan, and Saudi Arabia. While titanium scrap imports from the EU and UK are also exempt, pre-existing duties—such as the 20% tariff on Chinese titanium added in March—still apply.

Meanwhile, concerns linger about supply disruptions, particularly in vacuum-grade titanium scrap. The US depends heavily on EU and UK sources to meet demand for ingot melting in aerospace-grade production.

Aerospace Industry Caught in the Crossfire of Uncertain Trade Measures

The aerospace supply chain could still face ripple effects, especially concerning finished parts, components, and jet engines. Major OEMs such as Airbus, Boeing, and Rolls-Royce remain cautious, stating that they are assessing the impact of the new tariffs.

Jet engines like CFM’s Leap-1A and 1B, which power the Airbus A320neo and Boeing 737 Max, span a US-French supply chain, raising questions about the impact of cross-border tariffs on subcomponents. Landing gear systems produced by Safran for the Boeing 787 and turbine modules from GE in the US to France further complicate the situation.

While titanium producers currently report no impact on OEMs for titanium-based parts, the ambiguity surrounding composite materials and mixed-alloy components could lead to future disruptions.

China's Tariff Retaliation Raises Stakes for US Aerospace Exports

In response, China has imposed a 34% tariff on all US imports, with no exemptions, escalating the trade conflict. This will impact US titanium exports to China—totaling 1,300t in 2024—mainly in bars, rods, and wire, as well as aerospace components vital to Comac’s C919 jet program.

China’s C919 relies on US-sourced Leap-1C engines, avionics from Honeywell Aerospace, GE Aerospace, and Collins Aerospace, making it vulnerable to retaliatory tariffs.

Although China sources the majority of its titanium domestically, these duties highlight the fragile interdependence of global aerospace production.

The Metalnomist Commentary

Titanium’s tariff exemption provides momentary relief to US aerospace and scrap processors, but the real uncertainty lies in composite supply chains. As the US and China entrench their trade defenses, aerospace firms must prepare for further regulatory fragmentation. Strategic stockpiling, diversified sourcing, and diplomatic engagement will define resilience in the next phase of industrial policy shifts.

China's Ferro-Titanium Exports and Imports Surge in 2024

China's Ferro-Titanium

Strong Export Growth Amid Higher International Prices

China's ferro-titanium exports more than doubled in 2024 as domestic suppliers targeted overseas markets for higher profits. According to customs data, exports reached 2,453 tonnes, up from 1,089 tonnes in 2023. December shipments alone hit 268 tonnes, marking a tenfold increase from a year earlier. South Korea, the UAE, and India emerged as the top destinations, importing 190 tonnes, 30 tonnes, and 25 tonnes, respectively.

Higher international ferro-titanium prices, averaging $6.65/kg in Europe compared to China's $5.94/kg, drove increased exports. Market participants noted that foreign buyers stocked up on the alloy due to concerns over further price hikes in China.

Rising Domestic Prices and Import Boom

Domestic ferro-titanium prices climbed in late December, reaching 27,000-29,000 yuan per tonne ex-works, up from 26,500-27,500 yuan a week earlier. The increase stemmed from rising off-grade sponge feedstock costs and renewed demand from domestic steel mills ahead of January production.

China’s ferro-titanium imports also soared in 2024, surging 61-fold to 985 tonnes from just 16 tonnes in 2023. In December alone, imports reached 140 tonnes, a sharp rise from 1 tonne a year earlier. Russia supplied 99% of China's total imports, benefiting from increased exports to non-EU states following EU sanctions on Russian ferro-alloys.

China Titanium Ore Prices Fall Amid Weak Dioxide Demand and Rising Supply

Titanium Ore

Titanium Dioxide Sector Contraction Drives Down Concentrate Prices

China titanium ore prices have hit a four-year low as demand from the titanium dioxide (TiO₂) sector weakens. Since 11 March, prices for 46% titanium concentrate dropped by 13% to 1,800–1,830 yuan/t ($249–253/t), ex-works, excluding VAT. The decline follows reduced feedstock purchasing by TiO₂ producers and rising spot availability of medium-grade ore.

Dioxide Producers Cut Output Amid Global Pressure

Anti-dumping measures targeting Chinese TiO₂ exports have shrunk international demand and pressured margins. As a result, several Chinese dioxide producers began lowering feedstock bids or halting production. March exports fell to 185,034 tonnes, down from 196,106 tonnes a year earlier. Rutile-grade prices also dropped to their lowest level since February, ranging from 14,000–15,300 yuan/t.

Ore Production Increases Despite Downward Price Pressure

Meanwhile, domestic supply surged. Sichuan Anning Steel and Titanium raised output using ultra-fine ore recovery tech. Water beneficiation plants also ramped up operations due to strong iron ore prices, boosting titanium ore co-production. Imports rose to 1.37 million tonnes in Q1 2024, further pressuring prices. Sellers are offering discounts, anticipating continued weakness.

The Metalnomist Commentary

China’s titanium ore market is under dual pressure from weakening TiO₂ demand and rising ore output. Unless export demand recovers or domestic production slows, concentrate prices may remain under strain through mid-2025.

LB Group Titanium Dioxide Output Rises in 2024 Amid Market Expansion Push

LB Group

LB Group, China’s largest titanium producer, increased its titanium dioxide output in 2024, aiming to expand its market share. The company produced 1.29 million tonnes of titanium dioxide last year, an 8.7% increase from 2023, according to its annual report released in April.

Surge in Sulphuric Process and Titanium Sponge Production

Most of the LB Group titanium dioxide output came from the sulphuric process, which accounted for 894,400t. The chlorination process contributed 401,100t. Sales also rose by 8.3% to 1.25 million tonnes, with a notable 12% increase in sulphuric-based products. Meanwhile, titanium sponge production soared by 35% to 69,700t, with sales up 43%, demonstrating strong downstream demand.

Titanium Concentrate Drives Vertical Integration Strategy

LB Group produced 1.49 million tonnes of titanium concentrate in 2024, using all of it for in-house conversion into titanium dioxide and sponge. This internal utilization strategy supports its vertical integration and reduces reliance on external feedstock. However, the company’s iron ore concentrate and iron phosphate segments declined, with output and sales falling by double digits due to weak demand.

The Metalnomist Commentary

The LB Group titanium dioxide output growth underscores its strategy to capture a larger share in China's expanding pigment and metal markets. By increasing utilization rates and internal feedstock use, LB is reinforcing its position as a vertically integrated global titanium leader.

China Titanium Mill Products Output Rises Sharply in 2024

Baoti Titanium

China titanium mill products output surged in 2024 as domestic and global demand increased across multiple industries. Leading producer BaoTi boosted its titanium mill production by 12% year-on-year, reaching 33,600 tonnes, with plans to expand to 43,000 tonnes in 2025. The company also raised sales by 6.5% to 31,300 tonnes last year.

Rising Demand from Aerospace and 3C Industries

The China titanium mill products output increase was driven by rising demand from the aerospace, 3C (computer, communication, and consumer electronics), and power sectors. Aerospace was the top contributor, with titanium usage climbing by 2,816 tonnes to 32,193 tonnes, accounting for over 21% of national consumption. The 3C sector followed with a 10% rise, reaching 11,000 tonnes, as major global brands like Apple, Samsung, and Huawei sourced titanium parts from Chinese producers.

Global Titanium Market Follows Upward Trend

China's 32 major manufacturers produced a combined 172,000 tonnes of titanium mill products in 2024, reflecting an 8.1% increase. This growth aligned with global trends, as worldwide titanium mill product output rose by 8% to 260,000 tonnes. The shipbuilding sector also showed robust demand growth, consuming 4,933 tonnes—up by 1,191 tonnes compared to 2023. Meanwhile, China's power industry added 1,364 tonnes of new titanium demand, driven by energy transition investments.

The Metalnomist Commentary

China titanium mill products output continues to reflect the nation’s growing dominance in high-performance metal markets. With expansion plans underway, China is poised to further strengthen its position across aerospace, electronics, and energy applications in 2025 and beyond.

Pangang Boosts Vanadium and Titanium Dioxide Output in 2024 Amid Price Decline

Pangang Group

Pangang Increases Output of Vanadium and Titanium Dioxide

Pangang Group, China’s third-largest titanium dioxide producer, raised output in 2024 despite lower spot market prices. The company produced 252,900t of titanium dioxide, up 0.8% year-on-year, including 26,900t via chlorination. Vanadium pentoxide output rose by 7.3% to 53,400t, while sulphate titanium slag production fell 6% to 181,800t.

Revenue Falls Despite Strong Output Gains

Pangang’s 2024 revenue fell by 8.2% year-on-year to 13.2 billion yuan ($1.82 billion), hit by weaker vanadium and titanium prices. The company’s current capacities include 1.8 million t/yr for titanium concentrate, 220,000 t/yr for slag, and 300,000 t/yr for titanium dioxide. Chlorination-based production contributes 75,000 t/yr, showing Pangang’s focus on high-purity product diversification.

2025 Targets Set Higher for Titanium Dioxide

Pangang plans to produce 52,500t of vanadium pentoxide and 290,000t of titanium dioxide in 2025. Of the total, 64,500t will be chlorination-grade material, while titanium slag output is forecasted to hit 192,000t. Meanwhile, export prices for 93% rutile-grade material rose to $2,100–2,150/t fob China, tracking domestic price strength.

The Metalnomist Commentary

Pangang’s output growth amid a low-price environment reveals a strategic push to preserve market position. While profitability took a hit, the company’s expanded production and chlorination investment could position it well for a rebound in global demand. Titanium and vanadium markets should monitor Pangang’s moves closely in 2025.