Recently, the Baoji Titanium Industry Association of Shaanxi Province organized a special symposium for the heads of major titanium and titanium alloy plate production and operation enterprises. The meeting conducted an in-depth analysis of the price trend of titanium plates and the rapid changes in the market situation from March to July. Entrepreneurs held special symposiums and discussions on the current large fluctuations in titanium prices from different angles. Luo Jianhui, chairman of Jucheng Titanium, Luo Jucheng, deputy general manager, Zhang Jianmin, chairman of Tengxin Titanium, Ma Xianbin, chairman of Jinshan Titanium, Li Haitao, general manager of Xingsheng New Materials Company, and Tang Pufang, chairman of Shaanxi Titanium Zirconium Technology Company attended the meeting. Jia Hong, executive vice president and secretary general of the Titanium Zirconium Hafnium Branch of the China Nonferrous Metals Industry Association, Lu Fusheng, vice president, and Hao Bin, director of the General Department, were invited to attend the meeting. The meeting was chaired by Li Xianmin, executive vice president of the Baoji Titanium Industry Association.
After resuming work on March 1, the production and operation were relatively normal because the company still had some early contracts. By April, the price of sponge titanium fluctuated greatly, from 70,000 yuan/ton to about 50,000 yuan/ton. An enterprise leader mentioned that after the Spring Festival, a certain enterprise set up a spot warehouse for titanium products in Baoji. This year, due to the epidemic isolation, many enterprises and engineering projects have stopped work and production, and the export situation is not very optimistic. It is hoped that titanium industry people will unite to stabilize the market and prices, and cannot blindly reduce prices. Lowering prices will not necessarily increase sales. If vicious competition occurs, the industry will enter a "cold winter". Enterprises in Baoji Titanium Valley keep a close eye on changes in market conditions and often analyze and discuss together, hoping to keep warm together, twist into a rope, and tide over difficulties together. After May, the market price of titanium plates fell. Civilian titanium materials, especially some chemical titanium plates, gradually dropped from 100,000 yuan/ton to the current 70,000 to 80,000 yuan/ton, and enterprises suffered losses to varying degrees. Some companies still have sponge titanium purchased at high prices. Even if they use sponge titanium at 45,000 yuan/ton to produce titanium plates that meet national standards, they will still lose money if they sell them at the current price. The decline continues unabated at this time. Some delegates at the conference believe that the price of titanium plates will fall even lower. If so, the price of titanium plate products will be inverted compared with raw materials such as titanium ingots.
The recent rapid decline in the price of titanium plates is a phenomenon that titanium production and operation companies have never encountered in many years. The situation is severe and is very unfavorable to the development of titanium companies and the titanium industry.
At the meeting, enterprise representatives analyzed that in the first few months of this year, the price of titanium plates has plunged faster and more sharply than ever before, especially for pure titanium plates used in chemical equipment manufacturing. The market price fluctuates greatly. This year's epidemic is the fuse for the sharp fluctuations in the price of titanium plates, and the plates are the most affected. An enterprise leader said that the prices of products such as titanium rods, wires, and pipes are also affected. Although the price fluctuations are smaller than those of titanium plates, the prices of pipes, rods, and wires are also falling, and the price reduction rate is relatively slow. In his opinion, the sharp fluctuations in the price of titanium plates are the inevitable result of the serious overcapacity of domestic titanium plates.
The large-scale rolling mills of steel and titanium enterprises roll titanium plates with high efficiency and large output, especially hot-rolled plates and steel rolling mills roll titanium coils. A large coil weighing several tons can be produced in half an hour, and the rolling cost is only a few thousand yuan per ton, which is much lower than the production cost of single-piece titanium plates. The total annual use of titanium plates in China is 30,000 to 40,000 tons. At present, the titanium plate production capacity of several steel and titanium joint enterprises exceeds 50,000 tons. In addition, several large titanium enterprises have invested in recent years. The large-scale production and large inventory are the internal reasons for the sharp drop in the market price of titanium plates. The person in charge of the enterprise said that the price of titanium plates has dropped sharply in the past few months this year, and the company has suffered serious losses. When the government went to the company for research, they reflected this problem and hoped that the government would purchase titanium materials for reserve. On the one hand, it can stabilize the market, and on the other hand, it can reserve low-priced titanium materials for the country's future key projects. At the same time, there are signs of recovery in sponge titanium recently. For example, in July, the price of sponge titanium in Panzhihua Steel rose by 3,000 yuan/ton. Let's see whether the price of titanium plates can be stabilized and rebounded in the following months as the price of sponge titanium stabilizes or rises.
The participants also analyzed that while the price of titanium plates is currently fluctuating sharply, in this year's market atmosphere where difficulties and opportunities coexist, it is necessary to seize the market demand opportunities for new products, invest in R&D expenses, connect with the market, and make good specialty products for enterprises to remain invincible in the crisis. An enterprise in the Titanium Valley successfully developed titanium alloy plates for mask machine production lines this year and achieved good sales results. In recent years, the country has vigorously developed development opportunities such as aviation, oil and gas mining, and lightweight weapons and equipment. Enterprises have increased the research and development of new titanium and titanium alloy products to meet the different needs of various fields of the market, relying on the development and application of specialty products to expand and digest the shortcomings of ordinary titanium plate, strip, tube, rod and wire production and operation, and relying on the production and operation of high-value-added specialized and special products to bring new vitality to enterprises.
The delegates suggested that industry associations at all levels should guide the development of the industry, publish monthly statistics on the production capacity, output, and usage of titanium plates and major varieties of titanium industries, and serve as a warning and guiding direction for the investment and development of governments and enterprises, and use scientific data to promote the healthy development of the titanium industry. In addition, in areas where there are no standards available for titanium applications, can we take the lead in jointly formulating relevant titanium product application standards, and provide product standards and usage standard services for the promotion and application of titanium metals. At the meeting, Jia Ling, Lu Fusheng, and Hao Bin analyzed the situation of the domestic titanium industry and the titanium industry in 2019, respectively, and called on entrepreneurs to unite in difficult times, increase the research and development of titanium products, and expand the application of titanium. The Titanium Zirconium Hafnium Branch of the China Nonferrous Metals Industry Association will reflect the relevant issues raised by enterprises (such as national reserves, etc.) to governments at all levels, and is willing to work with everyone to make greater efforts for the healthy and high-quality development of China's titanium industry.
