Titanium sponge output from aerospace-approved titanium sponge producers increased last year as lower output from Japan was offset by higher capacity utilisation in Kazakhstan and Saudi Arabia.
Japan, Kazakhstan and Saudi Arabia produced 89,000t of titanium sponge in 2024, up from 84,000t a year earlier, according to US Geological Survey (USGS) and industry data.
Japanese titanium sponge production amounted to 55,000t last year, down by 3pc from 57,000t in 2023, USGS data show, as inventory adjustments, particularly from domestic consumers, weighed on volumes.
Ust-Kamenogorsk Titanium and Magnesium Plant (UKTMP) — the sole producer in Kazakhstan — confirmed to Argus that it produced 19,000t last year, up from 16,000t in 2023, as its exposure to the US market is lower than that of Japan's Toho Titanium and Osaka Titanium.
Saudi Arabian production — concentrated in AMIC Toho Titanium Metal — rose to 15,000t in 2024 from 11,000t in 2023, USGS data show, putting it just short of full capacity at 15,600 t/yr.
China challenges status quo
China's 2024 sponge production was steady on the year at 220,000t, USGS data show, yet capacity continued to climb at an unprecedented rate. USGS pegged Chinese capacity at 260,000 t/yr at the close of last year, but it scaled to as high as 320,000 t/yr of capacity, according to market participants.
Chinese titanium sponge is not yet qualified for critical aerospace applications. But Chinese titanium producers are increasingly competing in the Japanese market on industrial applications — the main consumption market for CP-grade metal — contesting the market share of established suppliers.
Japanese imports of unwrought titanium from China increased to 1,198t in 2024, from 451t in 2023 and just 43t in 2022. Unwrought titanium includes titanium sponge and titanium ingot, implying that either Japanese melters are accepting Chinese sponge to produce ingot, or forgers are taking Chinese ingots to produce semi-finished products.
Argus last assessed CP-grade 2 ingot contract prices at $11.50-12.50/kg cif main port versus domestic Chinese TA2-grade ingot prices at 52,000-54,000 yuan/t ($7.14-7.41/kg) ex-works China.
Argus also understands that certain US consumers are importing and testing Chinese titanium sponge, albeit the volatile trade tariff environment is unsettling this dynamic. The US imported 1,068t from China in 2024, compared with only 154t a year earlier.
On the flip side, the US scaled back sponge imports from Japan to 27,692t in 2024, from 31,387t in 2023, because ingot melters decreased their raw material intake in response to lower-than-expected build rates on Boeing's 787 Dreamliner — the primary titanium driver — and the 737 Max, alongside other supply chain constraints.
| Titanium sponge production, 2024 (excl China, Russia) | t | |||
| Country | Production in 2024 | Production in 2023 | Capacity | Capacity utilisation in 2024 |
| Japan | 55,000 | 57,000 | 65,200 | 84% |
| Kazakhstan | 19,000 | 16,000 | 26,000 | 73% |
| Saudi Arabia | 15,000 | 11,000 | 15,600 | 96% |
| Total | 89,000 | 84,000 | 106,800 | 83% |
| — USGS, industry data | ||||
