China's titanium sponge trade pattern has reversed

As a cornerstone material for high-end manufacturing sectors such as aerospace and medical, the developments in the titanium sponge industry have consistently impacted the global supply chain. The latest industry data shows that China's titanium sponge industry has achieved remarkable growth over the past two years. Not only has its output remained the world's largest, but its import and export structure has also undergone a fundamental shift from net import to a sustained surplus, marking a significant improvement in the position of China's titanium industry in the global value chain.

Titanium sponge, a primary form of metallic titanium, is named for its porous, sponge-like structure. It is a core raw material for the production of titanium alloys and titanium materials. Its production requires complex processes such as titanium ore chlorination, titanium tetrachloride purification, and magnesium thermal reduction. The purity of the product directly determines its downstream application grade. Grade 0 titanium sponge for aerospace applications must contain ≤0.15% total impurities, while medical-grade products have even stricter oxygen content control requirements. This "high-end" nature has long made titanium sponge a key indicator of a country's new materials industry strength.

The changes in import and export data provide a compelling illustration of industrial upgrading. Data shows that while my country remained a net importer of titanium sponge in 2022, the trade pattern reversed completely in 2023: exports surpassed imports for the first time, resulting in a trade surplus for the year. This trend continued in 2024, with exports reaching 6,000 tons. The average import price fell from 47,900 cny/ton in 2023 to 14,600 cny/ton, a much smaller decline than that of imports, demonstrating the increased competitiveness of domestically produced products.

International market opportunities and policy support are creating a synergistic effect. Due to international sanctions, the global supply of aviation-grade titanium sponge has a gap of 80,000 to 100,000 tons. The export price of China's grade 0 titanium sponge has climbed from $8,900 per ton in 2021 to $12,600 per ton in 2024. Domestically, the "14th Five-Year Plan for the Development of the Titanium Industry" sets a clear target of 70% self-sufficiency in high-end titanium sponge by 2025, and an increase in the export tax rebate rate to 13%, directly driving a 67% surge in exports in 2023.