In March 2025, the Chinese titanium material market exhibited a pattern of “robust supply and demand, along with structural optimization.” Driven by demand from aerospace, new energy equipment manufacturing, and high-end medical fields, the overall titanium material price index rose by 2.3% month-on-month, with export volumes increasing by 18.6% year-on-year. Notably, domestic enterprises accelerated their transition to high-end products, with titanium alloys accounting for over 45% of total production for the first time, and sponge titanium import dependence falling below 10%.
Barrier Escalation
On March 1, the U.S. Department of Commerce implemented a new tariff policy on titanium materials, increasing the tariff rate for Chinese titanium plates, strips, tubes, and other processed products from 15% to 35%. This resulted in a year-on-year drop of 62% in exports to the U.S. during the same month. Export enterprises focusing on high-end aviation titanium materials were the first to be affected, and some small and medium-sized manufacturers reliant on the U.S. market were forced to suspend order acceptance.
Market Dynamics
- Schwammtitan: Capacity was released in a concentrated manner, with domestic sponge titanium production reaching 18,000 tons in March, a record high. A new 50,000-ton production line in the Panxi region was commissioned. In terms of prices, sponge titanium increased slightly in March, with the current average price of Grade 0 sponge titanium stabilizing at RMB 50,000-51,000 per ton. Downstream demand was stable with a slight increase. Due to export obstructions, enterprises will focus their sales domestically. With increased capacity among major enterprises and supported by military orders, the inventory cycle maintained a reasonable level of 25 days.
- Titanbarren: The trend of high-end product development was evident, with orders for aviation-grade TC4 titanium alloy ingots increasing by 35% year-on-year, and prices remaining stable with a slight increase.
- Titanium Plates/Strips: Driven by booming demand from the new energy sector, production of ultra-thin titanium strips (0.05mm) for hydrogen fuel cell bipolar plates increased by 42% month-on-month. Companies such as CATL and BYD signed annual framework agreements, indicating strong future demand.
- Titanium-Steel Composite Plates: Prices for titanium-steel composite plates used in chemical containers experienced a slight 3% correction, with inventory turnover cycles shortened to 28 days.
- Titanstäbe/Wires: The medical device sector emerged as a new growth point, with exports of titanium bars for orthopedic implants to Europe increasing by 27%. Industry enterprises achieved breakthroughs in obtaining FDA certifications, opening up the EU export market. In the electronic 3C field, demand for titanium alloy screws and wires exceeded expectations, with monthly purchases exceeding 500 tons, and market demand continued to increase.
- Titanrohre: Driven by seawater desalination projects, coastal nuclear power projects boosted demand for nuclear-grade titanium welded pipes. Domestic enterprises won a RMB 260 million order for the Saudi Red Sea project, bringing new growth opportunities for domestic titanium tube exports. On the other hand, inventory accumulation of large-diameter titanium tubes for the oil and gas sector led some enterprises to shift towards LNG low-temperature tube production, resulting in a decline in titanium welded tube orders and prices.
- Titanpulver: With the acceleration of additive manufacturing industrialization, the price of titanium powder for 3D printing fell to RMB 380 per kilogram, and the localization rate increased to 65%. Procurement volumes of spherical titanium powder for the aerospace sector exceeded 200 tons. The commissioning of NPU new plasma atomization technology opened up new prospects for 3D printing.
Export Market: Breakthroughs in Emerging Markets
- Emerging Market Substitution Effect: The market share of ASEAN increased to 29%. Vietnam’s first refining and chemical integration project procured 120,000 tons of titanium composite plates (contract value of RMB 780 million), with Chinese standard TA10 corrosion-resistant alloy replacing Japanese standard JIS Class60 for the first time.
- Breakthroughs in High-End Market Access: Three new enterprises obtained EU aviation certification, achieving stable monthly supplies of 500 titanium forgings for Airbus A320neo, breaking the monopoly of Russia’s VSMPO-AVISMA. German TÜV Rheinland-certified titanium welded pipes for nuclear power won the bid for the Saudi Red Sea project, marking China’s entry into the primary nuclear power supply chain for titanium materials.
- Decreased Currency Sensitivity: The proportion of dollar settlements dropped to 58%, with expanded application of the Cross-Border Interbank Payment System (CIPS).
Industry Outlook
- With the injection of RMB 500 billion in special treasury bonds into the four major banks by the Ministry of Finance, it is expected that the financing costs for titanium material enterprises will decrease by 0.5 to 1 percentage points in the second quarter.
- Green trade barriers are escalating, with the EU’s Carbon Border Adjustment Mechanism (CBAM) including titanium materials in its calculation scope, increasing export costs by 8 to 12%. Enterprises need to be vigilant about the impact of tariffs on export costs.