2023 Titanium Industry Year-End Inventory

In 2023, the adjustment from magnitude to quality has just begun. At present, the adjustment seems to be calm, but in fact, this round of adjustment is bound to be rough! The price of titanium sponge has dropped from 80,000 yuan/ton in 2022 to the current 50,000 yuan/ton, and the actual transaction price is less than 50,000 yuan/ton. According to the future development layout of titanium sponge companies such as Yunnan Guoti, Xinjiang Xiangsheng, Panzhihua Iron and Steel Sponge Titanium, Shuangruiwanji, production capacity and output will be significantly increased. Although many smelting, forging, and titanium material companies have been established, the downstream application fields have not yet been opened. Therefore, it will be difficult for prices to rise every time in the future, which is determined by the market with overcapacity.
Then there is the foreign influence. Today, some fields such as steel have large industrial scales and limited development space. "Fuzzy" believes that the small titanium industry only has more than 200,000 tons of sponge titanium and more than 100,000 tons of titanium materials, so there is huge room for development. From the perspective of steel and aluminum, titanium does have huge room for development and is worthy of the influx of capital. However, we only look at the space and ignore the application field. The space has not yet been opened. The next two or three years will definitely be competition between foreign companies and current titanium companies. For example, a hotel operator in Baoji invested more than 1 billion to build a nearly 30,000-ton Wanhao titanium smelting furnace, becoming the largest titanium smelting enterprise in the country. Such a large investment will definitely shake up the existing smelting; until 2019, Yunnan Cathay Co., Ltd., which entered the field of sponge titanium, had formed a production capacity of 90,000 tons. This year's output will exceed 50,000 tons, making it the world's largest titanium sponge company. They have established a high-quality development path and have obvious industry advantages. Currently actively preparing for listing; Shandong Guoxin Foil became the leader in titanium foil production in two years, and Shaanxi Hualu Gold and Titanium took more than a year to become the only domestic hot-rolled titanium profile manufacturer...
Repeated construction inside the titanium ring resulted in severe involution. Off-site entrepreneurs transitioned into titanium and competed with companies in the titanium circle for the market. This will inevitably trigger in-depth adjustments in the titanium industry and push the titanium industry onto the path of high-quality development. In a sense, repeated construction looks like cannibalism, but in fact it is a game of survival of the fittest through involution; the addition of outside entrepreneurs has broken the self-contained structure of the titanium circle. , creating breakthroughs in the collision of ideas and technological innovation. Achieve changes in industrial thinking. The result of involution is to promote the "titanium revolution", promote the transformation of China's titanium industry in the painful adjustment from quantity to quality, and promote the transformation of "Chinese titanium" to high-yield development.
In 2023, my country's titanium sponge output will exceed 200,000 tons for the first time, and my country's titanium industry will also move from the production level to the quality level. This is the only way for high-quality development of the industry. Although the transformation period is painful, the adjustments in the past two or three years are all aimed at making the "15th Five-Year Plan" coming in 2026 better.
The road to "adjustment" is as iron as iron. "After the pain is over" - phased adjustment will surely push China's titanium industry towards a new titanium industry in the process of collapse and rebirth.