en.Wedoany.com Reported - From January to June 2026, China's sponge titanium production increased by 11% compared to the same period in 2025. As the world's largest producer of sponge titanium, China maintained steady growth in output during the first half of the year.
Sponge titanium is a fundamental raw material for producing titanium materials and titanium alloys, widely used in aerospace, military, medical, chemical, and new energy sectors. In recent years, driven by the rapid development of China's high-end manufacturing industry, demand for high-quality sponge titanium has continued to grow. According to industry data, the total national sponge titanium output in the first quarter of 2026 was approximately 67,300 tons, up 6.61% year-on-year. Monthly output in May was about 24,800 to 25,400 tons. The cumulative production increase of 11% in the first half of the year accelerated compared to the first quarter.
In terms of industry structure, China's sponge titanium production capacity is gradually concentrating among leading enterprises. Under dual pressure from costs and prices, some small and medium-sized enterprises have delayed production or voluntarily reduced output, with new capacity mainly coming from leading companies such as Pangang Vanadium & Titanium, Baoti Co., Ltd., and Yunnan Guotai. It is estimated that China's total sponge titanium production capacity will reach around 400,000 tons in 2026, with capacity utilization expected to recover to over 65%. Against the backdrop of increasing global concentration in the titanium industry, China remains firmly positioned as the world's largest producer of sponge titanium and titanium materials.
Alongside the growth in sponge titanium production, the industry also faces structural challenges. Transaction prices for civilian-grade sponge titanium remain stagnant, while supply of high-end aerospace-grade products is tight. In terms of titanium concentrate, the domestic market continues to see oversupply, with production capacity in Xinjiang driving a year-on-year output increase of over 70%, and domestic ore prices significantly lower than the same period last year. Overall, the first half of 2026 saw China's sponge titanium industry characterized by "production growth, structural divergence, and concentration among leading enterprises."
