H1 2025 Overview of China’s Titanium Sponge Market

In the first half of 2025, China’s titanium sponge industry showed a steady trend overall. Despite some price fluctuations, the market remained relatively stable compared to previous periods.

1. Supply and Production

China’s domestic titanium sponge output in H1 2025 totaled approximately 94,000 tons, marking a slight decrease of 3% compared to the same period last year. The leading production regions were Xinjiang, Yunnan, and Sichuan. Xinjiang maintained the highest output share at around 37,000 tons, while Yunnan followed with 22,000 tons. Several facilities underwent equipment maintenance and scheduled shutdowns, affecting total output.

2. Product Grades and Supply Structure

The primary grade produced was Grade 1 (Gr1) titanium sponge, suitable for melting and titanium alloy production. China’s domestic production still struggles to meet the purity requirements for aerospace-grade materials, and most of the high-end sponge titanium still relies on imports, mainly from Japan, Kazakhstan, and Ukraine.

3. Pricing Trends

At the start of 2025, domestic prices for titanium sponge hovered around ¥53,000/ton (approx. USD 7,300/ton), with slight fluctuations due to demand from the military, aerospace, and chemical sectors. By the end of June, prices stabilized at around ¥51,500–52,000/ton. Key cost drivers included magnesium prices and energy inputs.

4. Import and Export Dynamics

China continued to import high-grade titanium sponge, particularly for aviation and medical use. Export volumes remained limited due to quality certification challenges. Major import sources included Japan and Kazakhstan, with imports totaling over 7,000 tons in H1 2025.

5. Market Outlook

Looking forward to the second half of 2025, China’s titanium sponge industry is expected to remain stable, with slight upward pressure on prices due to increased demand in defense and clean energy sectors. However, oversupply risk remains in certain low-grade applications, and market competition is intensifying among producers.