Analysis on China Sponge Titanium Production Data of December 2022

According to the statistics data from LLDD, the production of sponge titanium in China in December 2022 is 18,400 tons, a year-on-year increase of 67.42%, and a month-on-month increase of 1.94%. The accumulated production of sponge titanium from January to December in 2022 is 176,900 tons, a year-on-year increase of 27.92%, with a production increase of about 38,600 tons.

Due to strong global demand, sponge titanium companies have increased production capacity, resulting in continued growth in market output in December.

The top three domestic sponge titanium production regions in China in December 2022 were Liaoning Province, Yunnan Province, and Xinjiang Province, accounting for 29%, 17%, and 14% of total domestic production respectively.

Sponge titanium prices remained firm in December, with high prices for raw materials and other factors. Although new orders weakened somewhat towards the end of December, sponge titanium inventory remained low due to a backlog of earlier orders, resulting in stable market prices.

After the highly volatile magnesium ingot market in 2021, the sponge titanium market gradually stabilized in 2022, with increasing production capacity and output due to strong global demand. In 2023, new production capacity in the sponge titanium market will continue to increase, leading to a greater supply than demand and increased competition pressure. Currently, sponge titanium inventory remains low, and the market is expected to continue running at high levels during the first quarter of 2023.