Recently, the titanium sponge market has some changes due to the sliding of concentrate, slag and dioxide. Sales volume of sponges decreases comparing to last period with strong hesitation from downstream market. The production volume of titanium sponge is still increasing in Zunyi. The balance between supply and demand may shift by more goods.

　　A producer from Chaoyang expresses that first grade sponge is at Yuan 50,000/ton, and most customers are acquaintances. The market and the downstream demand are pessimistic. Most deals are actually Yuan 49,000/ton, only few producers can conclude at Yuan 50,000/ton.

　　Another producer from Shanxi says that there is little change in the market, yet inquiries is sliding. The concluding price of the first grade sponge is at Yuan 49,000/ton with more discounts for cash.

　　Our opinion: the augment production from Zunyi will change the situation of supply less than demand. The general circumstance will be balanced or a little more oversupply. However, as the macroeconomy and bulk metals are facing obstacles, the sponge market may have downward pressure in August.