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.

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'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 Titanium Consumption 2025 Rises as Export Challenges Persist

China Titanium, Xinnuo Titanium

China titanium consumption 2025 is expected to rise slightly, driven by demand from aerospace, electronics, and power industries. However, Chinese titanium producers continue to face significant export barriers in Western markets, especially the U.S. and EU, due to tariffs and certification hurdles.

Aerospace and 3C Sectors Lead Titanium Demand Growth

China consumed 151,000 tonnes of titanium mill products in 2024, up 1.6% year-on-year, according to CNIA-Ti. The aerospace sector recorded the largest growth, consuming 32,193 tonnes—an increase of 2,816 tonnes from 2023. The power industry followed, supported by growth in renewable energy, while 3C (computer, communication, and consumer electronics) demand rose by 10% to 11,000 tonnes, with Apple, Samsung, and Huawei sourcing parts from local suppliers.

Chemical applications remained the largest titanium-consuming sector at 48.5% of total demand, but usage in chemicals, ocean engineering, and salt manufacturing declined. Shipbuilding also saw steady growth, increasing consumption by 1,191 tonnes to 4,933 tonnes.

Titanium Sponge Output Rises, Led by China and Saudi Arabia

Global titanium sponge production increased by 12% in 2024 to 380,300 tonnes. China led with 256,000 tonnes, up 36%, accounting for 67% of global output. Saudi Arabia followed with a 17% rise to 15,000 tonnes. Japan’s sponge output declined 3.5% to 55,000 tonnes, while Ukrainian production remained at zero.

Russia's VSMPO-Avisma and Solikamsk produced between 20,000 and 26,500 tonnes, while Western buyers continue sourcing from Russia due to limited alternatives, despite sanctions and restrictions.

Export Market Access Remains a Major Hurdle

Chinese titanium exporters are eager to enter Western aerospace markets, but qualification requirements for sponge and semi-finished products like billets and bars remain a key challenge. In the U.S., a 20% tariff on titanium products imposed in early 2024 has stalled contract negotiations. Although titanium is exempt from reciprocal tariff increases, the uncertainty has added risk for long-term buyers.

In contrast, the EU and UK have suspended some titanium tariffs for aerospace, but supply chains remain locked into existing agreements with qualified Western producers. Market penetration remains difficult despite strong output growth in China.

The Metalnomist Commentary

The China titanium consumption 2025 forecast reflects steady domestic growth, led by aerospace and electronics. However, real global competitiveness hinges on overcoming certification and tariff-related export hurdles, particularly in Western aerospace markets still reliant on legacy Russian supply chains.

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.

New Titanium Mill Set for North Carolina

A new titanium manufacturing plant is set to rise in Fayetteville, North Carolina, with a significant investment of nearly $868 million. The facility, spanning 500,000 square feet, will produce aerospace-grade titanium, according to the state's commerce department.

The venture, operated under the name Project Aero by American Titanium Metal, is expected to create over 300 jobs in the area. The site will utilize recycled scrap metal to "melt, roll, and finish titanium," as disclosed by a spokesperson to Metalnomist. Georgia and Texas were also in contention as potential locations.

To support this project, North Carolina's economic investment committee has approved a job grant that could provide up to $8 million in incentives over the next 12 years. Additionally, the Cumberland County commissioners board sanctioned up to $1.3 billion in bonds to attract the project.

Specific details about the facility's production capacity remain undisclosed, and information about the company is limited. American Titanium Metal was incorporated in Delaware on September 11, 2023, with a third-party service acting as its registered agent.

This new mill will bolster domestic supplies of titanium, a metal highly valued in the aerospace and defense sectors for its heat resistance and strength-to-weight ratio. Other companies like Perryman Group, ATI, and Titanium Metals (Timet) are also slated to expand their titanium melting capacities by 2026 to meet rising demand.

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.

PTC Industries Enhances Titanium Production with New VAR Furnace

Aerolloy Technologies

PTC Industries, through its subsidiary Aerolloy Technologies, has significantly advanced its capabilities in titanium alloy production by commissioning a new vacuum arc remelting (VAR) furnace. This strategic move positions the Lucknow-based company as a pivotal player in the aerospace and defense sectors, where the demand for high-quality titanium components is steadily increasing.

Expanding Capabilities in a Competitive Market

The newly operational VAR furnace boasts an impressive annual melting capacity of 1,500 metric tonnes, capable of producing titanium alloy ingots up to 1,000mm in diameter and weighing as much as 10 tonnes each. This development is particularly timely, as geopolitical shifts—especially the ongoing conflict in Ukraine—have pressured Western companies to diversify their titanium sources away from traditional suppliers like Russia's VSMPO-AVISMA.

Strategic Growth and Product Diversification

PTC Industries' acquisition of the VAR furnace in 2022 marks a significant step in its expansion within the global titanium supply chain. Notably, PTC Industries already serves prestigious clients such as Safran Aircraft Engines and BAE Systems, supplying various titanium casting parts. The addition of the VAR furnace enhances PTC's product offering, which now includes billets, bars, rods, and soon, plates and sheets from its newly acquired hot-rolling mill.

China’s Comac Expands C919 Fleet with New Deliveries

Boosting Domestic and Global Market Presence

The Commercial Aircraft Corporation of China (Comac) has delivered its C919 airliner to Air China and China Southern Airlines, both of which placed orders for 100 C919s each in April. These deliveries, part of a gradual rollout scheduled from 2024 to 2031, mean that all three of China’s largest airlines now operate the C919.

Comac previously delivered the first C919 to China Eastern Airlines in March, which has since ordered an additional 100 units. The company also announced a new order from Tibet Airlines for 40 C919s at the 2024 Singapore Airshow. With over 900 orders in total, the C919's growing presence is expected to drive up demand for titanium mill products used in its construction. Each C919 aircraft utilizes 3.92 tons of titanium, and the aerospace sector accounts for over 25% of global titanium consumption.

Developed since 2008 and receiving certification in 2022, the C919 is now vying for approval in Europe to compete internationally against Boeing and Airbus.

IperionX Secures $47M DoD Funding to Advance U.S. Titanium and Rare Earth Supply Chain

IperionX

Titan Project and Virginia Facility to Strengthen Critical Mineral Independence

IperionX has been awarded up to $47 million by the U.S. Department of Defense (DoD) to advance its Titan titanium and rare earth project in Tennessee and to boost production capacity at its Virginia manufacturing campus. This investment forms part of a larger $71 million public-private partnership aimed at reinforcing domestic critical mineral supply chains.

The funding will support a two-phase plan over the next two years. In Phase 1, the DoD will contribute $5 million toward a feasibility study to bring the Titan mineral sands project—located near Camden, Tennessee—to shovel-ready status. IperionX will add $1 million to this effort, which is expected to be completed within 12 months.

Titan Project to Deliver Multi-Metal Feedstocks for 25 Years

The Titan project, covering 11,000 acres, is fully permitted and expected to operate for 25 years. Once in production, it will yield a wide array of strategic minerals, including:

• 4,600 t/yr of rare earth element (REE) concentrate

• 16,700 t/yr of rutile

• 95,500 t/yr of ilmenite

• 22,400 t/yr of premium zircon

• 16,100 t/yr of zircon concentrate

IperionX has signed non-binding offtake agreements with Chemours and Mario Pilato BLAT for approximately half of its titanium and zircon output. These firms serve the chemical, ceramics, glass, and refractory sectors, providing early validation of the project’s commercial viability.

Vertical Integration to Include REE Processing and Production Expansion

The remaining $42 million of the DoD funding will go toward expanding production and supporting vertical integration at IperionX’s Virginia facility. The company also plans to process REE concentrate from Titan at Energy Fuels' White Mesa mill in Utah, one of the only licensed facilities in the U.S. capable of refining both light and heavy rare earth oxides.

This strategic funding package highlights growing U.S. efforts to reduce reliance on foreign sources, especially China, for titanium, rare earths, and zirconium—all essential to defense, aerospace, and clean energy industries.

STS Metals Strengthens Aerospace and Defense Capabilities with Valley Forge Acquisition

STS Metals

STS Metals, a leading specialty metals provider, has recently announced the strategic acquisition of Valley Forge, a prominent forged product manufacturer. This move is set to enhance STS Metals titanium forging capacity and solidify its position as a pivotal supplier in the aerospace and defense industries.

Expanding Capabilities and Portfolio

Valley Forge, located conveniently less than a mile from STS Metal's Sierra Alloys unit in Irwindale, California, is renowned for its expertise in producing forged round, flat, and ring products crafted from titanium and specialty alloy steels. With a robust infrastructure that includes a 1,000 short ton (st) open-die press and a rolling mill, Valley Forge offers a comprehensive suite of services such as heat treating, cutting, and machining.

The acquisition not only expands STS Metals product range but also integrates a sixth company into its burgeoning portfolio. This enhancement in operational capabilities is expected to bolster the company's offerings, particularly in flat products, as noted by Joe Kerkhove, Chief Commercial Officer at STS Metals. The addition of a third open-die press, alongside the existing 350st and 500st presses at Sierra Alloys, is aimed at broadening the dimensions and scale of production.

Strategic Market Positioning

This strategic expansion enables STS Metals to delve deeper into the defense sector and strengthen its ties within commercial aerospace supply chains. Valley Forge’s existing customer base, which includes original equipment manufacturers (OEMs), machine shops, and distributors, provides STS Metals with increased market exposure and business opportunities.

Looking forward, STS Metals is not planning to enter the rolled ring market; however, the acquisition will support its rolled plate operations through Valley Forge’s rolling mill capabilities. The company is also actively seeking further acquisitions to continue its growth trajectory, particularly targeting manufacturers that align with its aerospace metal product offerings.

Revival of Madagascar's Toliara Minerals Project: A New Chapter for Critical Minerals

Toliara Minerals Project

Madagascar's government has officially ended the suspension on the Toliara critical minerals project, signaling a significant step forward in the exploitation of key mineral resources after a prolonged five-year break. This move paves the way for the resumption of mining activities critical for global industries, particularly in the production of titanium and zirconium.

Unlocking Potential: Toliara's Rich Resource Base

The Toliara project, initially stalled in November 2019 due to negotiations over fiscal terms, holds a comprehensive mining permit for extracting valuable minerals such as ilmenite, rutile, and zircon. These materials are essential for various industrial applications, including manufacturing aircraft, electronics, and ceramics. The project's development promises substantial outputs, with a feasibility study projecting an annual production capacity of 1.03 million tonnes of zircon, rutile, and ilmenite over a 38-year lifespan.

Strategic Developments and Future Prospects

The project's rejuvenation follows the acquisition of Base Resources, the original project owner, by US-based Energy Fuels in October 2024. This acquisition aligns with Energy Fuels' strategic interests in diversifying their mineral portfolio, especially focusing on monazite, a mineral sand rich in rare earth elements. These elements are crucial for Energy Fuels' operations at the White Mesa mill in Utah, where they aim to produce rare earth oxides.

Energy Fuels plans to reach a financial investment decision (FID) on the Toliara project by early 2026 and is exploring the addition of rare earth elements to the mining permit, expanding the project's scope and potential market impact.