PRICE OF TITANIUM SPONGE IS LIKELY TO BE GREATLY ADJUSTED
Energy consumption "double control" strength overweight titanium sponge implicated
Recently, China national development and Reform Commission directly named nine provinces and regions at a regular press conference: Qinghai, Ningxia, Guangxi, Guangdong, Fujian, Xinjiang, Yunnan, Shaanxi and Jiangsu. In the first half of the year, the energy consumption intensity did not decrease but increased compare with last year! In addition, the reduction rate of energy consumption intensity in 10 provinces has not met the progress requirements, and the national energy-saving situation is very serious.
The China national development and Reform Commission pointed out that all localities should remain highly alert to the severe energy-saving situation in the first half of the year and take effective measures to ensure the completion of the double control goal of energy consumption throughout the year, especially the goal of reducing energy intensity.
In response to this phenomenon, Shaanxi Province has actively taken measures to deal with it. Among the measures taken, the most effective and fastest method is to reduce production. According to the data of China Nonferrous Metals Industry Association, from January to June, China's domestic magnesium output increased by 8.13% to 434000 tons compare to first half of 2020. As the world's largest magnesium producing area, Shaanxi's output in the first half of the year was 302500 tons, a year-on-year increase of 16.92%. Of course, the reduction of output in Shaanxi will affect the overall supply of domestic and foreign markets.
The factories have to stopped production on a large scale and the price soared unprecedentedly.
On the first working day after the Mid Autumn Festival, it was learned from the market that with the increase of the "double control" policy on energy consumption, most magnesium enterprises in Shenfu, the main producing area of domestic magnesium ingots, have been shut down, and the resumption time is unknown, waiting for the government's notice. Today (September 22), the quotation of mainstream factories in fugu area was suspended, and the quotation of individual factories is tentatively CNY60000/ton including tax. It is reported that the current high price transaction in the market is not clear. The sudden large-scale shutdown has left the industry helpless.
According to the International Magnesium Association, the price of magnesium has risen to the highest level in 13 years and may rise further in the next few months, and then "return to a more normal level by the end of the first half of 2022".
The industrial production of sponge titanium has been more than 70 years since 1948. At present, the only titanium preparation method used in industrial production in the world is still Kroll Method, also known as magnesium thermal method. Its production process mainly includes rich material preparation, chlorination, titanium tetrachloride refining, reduction distillation and magnesium chloride electrolysis. The essence of magnesium reduction is that titanium tetrachloride reacts with metal magnesium in an argon atmosphere at 880 ℃ ~ 950 ℃ to obtain sponge like metal titanium and magnesium chloride. The magnesium chloride and excess magnesium in sponge titanium are removed by vacuum distillation to obtain pure titanium. The distillation condensate can recover metal magnesium by melting, and magnesium chloride can recover magnesium and chlorine by molten salt electrolysis.
Manufacturing 1 ton of sponge titanium requires about 1.5 tons of magnesium ingot, which has a great demand for magnesium. The current surge in magnesium prices will greatly push up the manufacturing cost of sponge titanium. It is reported that on the 22nd day, sponge titanium production enterprises have suspended external quotation, and the contracts that have not been signed have also been suspended. All these indicate that the price of titaniumsponge is likely to be greatly adjusted, and production enterprises and downstream users need to make preparations for it.
Comparison of a set of data
-- on December 31, 2020, the price of magnesium ingot is 15500-15600 yuan / ton. On September 22, 2021, the price of magnesium ingot is 62400-62500 yuan / ton. Increase by more than 4 times;
-- on December 31, 2020, the price of titanium tetrachloride is 6500-7000 yuan / ton. On September 22, 2021, the price of titanium tetrachloride is 7800-7900 yuan / ton. Up 1300-1400 yuan.
-- on December 31, 2020, the quotation of titaniumsponge is 64000 yuan / ton. On September 20, 2021, the quotation of titanium sponge was 67000-70000 yuan / ton (the quotation has been stopped at present).
Cost analysis of titaniumsponge
Magnesium ingot and titanium tetrachloride are the main cost of sponge titanium. According to the theoretical data of 1.1 tons of magnesium ingot and 4 tons of titanium tetrachloride for the production of 1 ton of sponge titanium, the cost of sponge titanium alone is close to 100000 yuan / ton.
The cost of sponge titanium is not only composed of magnesium ingot and titanium tetrachloride, but also composed of management expenses, financial expenses, depreciation expenses, water and electricity expenses, labor expenses and other expenses. In this way, the cost of titanium sponge exceeds 100000 yuan, 110000 yuan or 120000 yuan per ton.
