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Titanium Prices Will Maintain The Upward Trend
Oct 17, 2018

In the past month, with the price of titanium sponge rising, the price of titanium has also shown a clear upward trend. In the future, the price of titanium sponge is still likely to rise, and the titanium enterprises in Baoji may not be able to resume normal production in a short period of time, resulting in a certain supply of titanium. Under the combined effect of two factors, the price of titanium in the short-term may continue to show a significant upward trend.

From the impact of the impact, the impact of rising raw material costs is relatively long, and the impact of the shutdown of Baoji on the market may be short-term. It is understood that the main domestic sponge titanium enterprises have already pre-sold the products in October. In other words, the amount of titanium sponge that can be traded freely in the market in the next two months is limited. Due to the impact of environmental inspections in the next two months, the prices of the two main raw materials of sponge titanium will remain at a high level, and there is a higher probability of further increase. Affected by this, the price of sponge titanium will still rise in the future. This effect will be transmitted to the titanium sales segment, pushing up the price of titanium.

In addition, the large-scale shutdown of the Baoji area has disrupted the ecological structure of domestic titanium supply in the short term. Due to the concentration of titanium enterprises in Baoji area and complete products, it has been the main titanium procurement base in China. The sudden environmental storm not only affects titanium producers, but also makes downstream customers encounter obstacles in purchasing. Some customers who are accustomed to purchasing from Baoji can't find other suppliers that can be replaced at the moment, and some orders can only be postponed. But this situation may only be short-term. On the one hand, the idle capacity in other parts of the country can make up for the vacancy caused by the suspension of production in Baoji. For example, Liaoning, Hebei, Jiangsu, Hunan and other provinces have idle capacity, and many companies are restarting production equipment to enter the market. On the other hand, when downstream customers gradually clear their minds and find alternative suppliers in other regions, the situation of supply and demand misplacement will be gradually resolved. And this process may last for about 2-4 weeks. Prior to this, information asymmetry at both ends of supply and demand will have a higher probability of pushing up the price of titanium.

Baoji Dingding Titanium Products Co., Ltd., through a variety of ways to produce, can still take orders, welcome customers to inquiry!

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