The status of supply and demand of sponge titanium in recent years was presented, and responses and measures adopted by different countries were also analyzed. It is pointed out that the increased supply and falling-off of demand win happen in the near future. The advanced fabrication techniques and quality of sponge titanium were summarized. The gaps between China and foreign countries are evident, especially in energy consume and quality during production of sponge titanium. It exposes that we should draw lessons from foreign countries and carry out technique development and improvement. The way for a healthy development of titanium industry in China is to improve the competitive power. It is rather a risk for the repeated low-level construction of sponge titanium base.