Demand growth to boost China's Ti sponge capacity

China's titanium sponge production capacity is projected to rise to 300,000-500,000 t/yr in the coming three to five years, according to An Zhongsheng, secretary-general of the China Nonferrous Metals Industry Association's titanium zirconium and hafnium branch (CNIA-Ti).

The growth will be supported by rising demand from the chemical, aerospace, marine engineering, computer, communication and consumer electronics (3C), daily necessities and air conditioning sectors, An told delegates at the China and CIS Titanium Industry Development Forum in Xi'an city in Shaanxi, a province in the country's northwest.

"Global demand from the civil aviation sector has recovered since the end of the Covid-19 pandemic, which has consequently tightened supplies for aviation-grade titanium sponge," An said, adding that demand from industrial sectors is the main driver for the Chinese titanium market and has seen significant growth in the past couple of years.

China's current titanium sponge production capacity stands at nearly 300,000 t/y, according to industry estimates. Used in civilian products, titanium is likely to become a new driving factor for China's future titanium development.

Its consumption in the global medical industry has increased rapidly in recent years, but Titanium's demand in China from the same sector has declined owing to a healthcare reform that promotes cheaper medical materials.

"Titanium sponge prices are expected to remain relatively stable in the long term, which is conducive to boosting application of this product," An said. Domestic titanium sponge supplies will be sufficient following capacity expansions.

Rapid production growth will gradually transform titanium from a rare metal to a common metal, An said. China produced 123,500t of titanium sponge in the first half of this year, according to data from CNIA-Ti.

China is heavily dependent on imports of titanium ores and concentrates, with the country's reliance on imports of these feedstocks around 35-40pc in recent years. Global titanium ore and concentrate production totalled 8.75mn t of titanium dioxide equivalent in 2023, with China accounting for 37pc of the total, followed by Mozambique at 18pc, South Africa at 11pc and Canada at 6pc.

Global titanium dioxide output was 7.56mn t last year, with China's output accounting for 55pc of the total, followed by North America and Europe. China's titanium dioxide production maintained growth because of domestic capacity expansions.

The world's titanium sponge production rose by 29pc on the year to 347,000t in 2023, with China's output accounting for 63pc of the total output, up from a share of 25pc in 2022. Sponge production in Russia, Japan, China and Saudi Arabia increased significantly last year, while Ukraine's sponge output was zero. Outputs from other countries were largely unchanged.

Global production for titanium mill products totalled 248,000t in 2023, with China accounting for 64pc of the total, followed by the US at 14pc, Russia at 13pc, Japan at 6pc and Europe at 3pc.