Cost Analysis of Titanium Sponge
Magnesium ingots and titanium tetrachloride raw materials are the main cost of constituting titanium sponge. According to the theoretical data of 1.1 tons of magnesium ingots and 4 tons of titanium tetrachloride to produce 1 ton of titanium sponge, the cost of this sponge titanium alone is close to 100,000 yuan/ton.
The cost composition of titanium sponge enterprises is also different. The cost of titanium sponge for private enterprises is slightly lower than that of state-owned enterprises, and the cost of titanium sponge for full-process enterprises is significantly better than that of semi-process enterprises. A full-process enterprise needs about 0.15 tons of magnesium ingots to produce one ton of sponge titanium, and a half-process enterprise needs about 1.1 tons of magnesium ingots.
There are many factors that influence the price of titanium sponge, and the main influential factors are as follows:
1. The price increase of raw materials promoted. For example, the rise of the main raw materials magnesium ingot and titanium tetrachloride will inevitably affect the price of titanium sponge, as well as the rise of electricity costs, labor costs, and financial costs. These are all factors that affect the price of titanium sponge.
Second, the downstream market just needs to see new application growth based on the stock, and the incremental demand will inevitably stimulate the price of titanium sponge. For example, the expansion of the military product field and the expansion of the civilian product application field in recent years are all factors that stimulate the production and price increase of sponge titanium.
Third, the change in the production capacity of sponge titanium affects the price change. In recent years, the downstream market just needed titanium sponge obviously showed a flexible growth trend, but the price of titanium sponge has not returned to the price of 250,000 to 300,000 yuan in 2004-2008, and it can only be 55,000-85,000 in two or three years. Fluctuations between 10,000 yuan (a large amount of time fluctuated around 60,000 yuan), because the production capacity of sponge titanium was expanded too fast, and the actual output increased too sharply: about 85,000 tons in 2019, 123,000 tons in 2020, and 150,000 tons in 2021. At present, due to the skyrocketing rise of magnesium ingots, titanium sponge enterprises are facing production restrictions, production reductions and even some halts. The production of titanium sponge in 2021 may increase slightly on the basis of 2020.
It is also inevitable to reduce production and shrinkage among sponge titanium enterprises. This is the general trend of market regulation and a correction for the excessive expansion of production capacity in recent years. During the "14th Five-Year Plan" period, the sponge titanium industry is facing reshuffle and reorganization, which is the general trend.
According to the skyrocketing upstream raw material magnesium ingot, the price of sponge titanium should be adjusted as soon as possible. The method of stopping quotation and suspension of sales is contrary to the market law, which is not conducive to the production of the downstream market, but will cause "downstream" customers to find substitutes as soon as possible. , It is very detrimental to the development of the titanium industry for a long time.
In the future, we will further devote our energy to technological innovation, quality improvement, and high-quality development. The current titanium sponge market is "not enough for high-end, and more for low-end." Therefore, fine quality and light quantity are the general direction of titanium sponge enterprises.
titanium ingot
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