China’s Sponge Titanium Market Analysis: H1 2025 Overview

According to a recent report released by the Industrial Big Data Department, the Chinese sponge titanium market experienced a steady upward trend during the first half of 2025, with prices rising by approximately 10.64%. By mid-year, the average price had increased by 5,000 yuan per ton compared to the beginning of the year.

Price Trends and Market Drivers

Sponge titanium prices continued the upward momentum seen at the end of 2024. At the start of 2025, the price for Grade 0 sponge titanium used in civilian applications ranged from 45,000 to 47,000 yuan/ton. By June, prices had climbed to 49,000–52,000 yuan/ton.

Several key factors drove this price increase:

• Low price base in 2024 H2: Prices hit historical lows, leading to cost-price inversions for producers.

• Rising raw material costs: Increasing pressure on production enterprises.

• Production controls: Many producers adopted limited output strategies, tightening supply.

• Growing downstream demand: Especially from high-end sectors such as aerospace and new energy, while general civilian demand remained stable.

Mid-Year Market Adjustment

In May, downstream manufacturers had already stocked inventory due to earlier price hikes. Combined with the seasonal market slowdown, this led to weaker transaction activity. Although prices were still firm in June, demand divergence became more apparent:

• Civilian chemical industries showed weakness, with cautious purchasing behavior.

• Small and medium-sized enterprises held excess inventory, delaying new orders.

• Despite these trends, existing backorders helped sustain tight spot supply, and price quotes remained resilient.

Outlook for H2 2025

Looking ahead, a mismatch in titanium feedstock supply and demand continues to weigh on the market. Prices for raw materials such as titanium ore and slag declined throughout H1 and are expected to stay weak in H2 due to limited supportive factors.

• Sponge titanium output remains steady, with slower growth in new production capacity.

• Civilian sector inventory pressure may increase, putting further strain on prices.

• However, export performance remains strong, which could help ease domestic oversupply concerns.

High-End Demand Supports Market Stability

China’s “15th Five-Year Plan” emphasizes strategic support for titanium alloy applications in aerospace, nuclear energy, and defense sectors. In H1 2025, military orders for titanium materials increased by 32% year-on-year—significantly outpacing civilian growth. Additionally, the new energy sector is expanding its demand for high-performance titanium materials.

Nevertheless, the civilian sector—particularly the chemical industry—faces ongoing demand stagnation. As a result, downstream titanium processing enterprises are dealing with elevated inventory levels and profit losses. The divergence between high-end and low-end demand is likely to continue, making it difficult for sponge titanium prices to find strong support in the general market.