Jeterry Titanium
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Titanium price is going up --- ( 2014-09-17)

Sub-material price for manufacture Titanium is suddenly increased.


One of sub-material(Titanium Tetrachloride) price has been increased since End of July,2014,accumulative amount of  increase is more than 12%;At the begining of Sep,titanium sponge is increasing correspondingly as well,we do think price for titanium sponge and titanium products will have new increase in the very short period.The whole environment for the family of titanium industry going better could be seen.


In the past,titanium sponge price was too low,factory production volume decreased,even it increased a little at the begining of 2014,but still too low at around 45k RMB/Ton,it's highly far away from the production cost for sponge(50k RMB/Ton),most of titanium sponge factories was deficit in red.Except Baotaihuashen(which is assigned supplier for Baoti,they are still full production),others either decreased or shut-down.China biggest sponge factory-Zunyi Titanium only start their 10,000Tons production volume(Total production capacity is more than 30,000Tons).Second sponge factory Tanshan Tianhe get involved in capital turnover trouble,other factories such as Shuangruiwanji,Hunan Jintian production volume is decreased,and rest of factories such as Jinchuan just shut-down completely.We think this situation won't stay for a long time,price will go back in reasonable price gradually.


Titanium tetrachloride is one of key material for titanium sponge production,it maybe leads to price increase.Titanium Industrial Chain is long: Ilmenite--------Hige titaniferrous slag(or rutile)--------Titanium tetrachloride--------Titanium sponge--------Pure titanium or alloy titanium  ingots--------Titanium products.As main material for sponge production among the Chain,titanium tetrachloride impacted the sponge price strongly.We've seen the sign of increase for titanium sponge since Sep.2014,and it almost increased 1%,still in rising way.Titanium products price is quoted according to sponge price + processing charges,so rising price for sponge will bring rising for titanium finished products.