1 Titanium: China's industrial upgrading drives the growth of high-end titanium demand
The high-end titanium material market benefited from the impact of upgrading and localization in aerospace and other fields, with strong demand. China's titanium industry market has long had problems such as insufficient capacity for high-end products, fierce competition for middle and low-end products, and product convergence. In recent years, through optimization and upgrading of the industrial structure, the demand for middle and low-end chemical, metallurgical, salt making and other industries has rapidly shifted to middle and high-end military, high-end chemical (PTA equipment), marine engineering and other industries, The industry profit is gradually and rapidly shifting from the above middle and low-end fields to the high-end fields with military industry as the main demand, especially in the high-end field of fastener (high-end downstream), 3D printing, high-end equipment manufacturing and other product finishing fields
2 Titanium material: excess capacity of primary titanium products, steady growth in sales of deep processed materials
The capacity and output of sponge titanium continued to increase, but the capacity utilization rate was low. In 2021, the global sponge titanium output will be 210000 tons, and the capacity utilization rate will be 60%; The production of sponge titanium in China is 120000 tons, with a capacity utilization rate of 68%, accounting for 57% of the global output. The production of sponge titanium in China has increased year by year, and the capacity utilization rate has continued to rise in recent years on the basis of the continuous elimination of old capacity. However, China still faces the shortage of high-end capacity, mainly relying on the industrial bottleneck of imports. In 2021, China will import 13800 tons of sponge titanium at a unit price of 7568 US dollars/ton; The export of sponge titanium is 4300 tons, and the export unit price is 5138 dollars/ton.
The production capacity of titanium ingots has steadily increased year by year. According to the statistics of 33 titanium ingot manufacturers by the Titanium Zirconium Hafnium Branch of China Nonferrous Metals Industry Association, China's titanium ingot production capacity will reach 199000 tons in 2020, an increase of 11.8% over 2019. This is mainly due to the new titanium smelting equipment capacity of two enterprises in Xinjiang Xiangsheng and Yunnan Titanium Industry. In 2020, the output of titanium ingots will be 120000 tons, with a year-on-year growth of 35%, which has been growing for six consecutive years. In 2020, the capacity utilization rate will be 60%, with year-on-year growth, but still at a low level. As titanium ingot is the intermediate product from sponge titanium to titanium material, its production capacity and output change trend are consistent with that of sponge titanium.
The output of titanium processing materials has maintained a high growth, with the highest proportion of plates and the fastest growth rate of wire materials. According to the statistics on the output of 32 major domestic titanium manufacturers by the Titanium Zirconium Hafnium Branch of China Nonferrous Metals Industry Association, China will produce a total of 97000 tons of titanium processing materials in 2020, an increase of 28.9% year on year. Among them, the output of plates is 57700 tons, accounting for 59% of the total output, the highest proportion; The second is the output of 15500 tons of bars, accounting for 16%; The production capacity of 9500 tons of pipes ranked third, and the proportion of titanium materials in other forms was relatively low. The output of silk was 1198 tons, up 55% year on year, the fastest growth rate.
3 Aerospace, medical care and ocean engineering become the three carriages driving demand
At present, there is room for growth in China's high-end demand. In the global titanium consumption structure, commercial aircraft and civil aircraft account for 56%. The proportion of China's aerospace titanium consumption has increased year by year in recent years, but it still accounts for less than 20%. This is mainly because China's aerospace manufacturing and production are mostly at the level of hatch, fuselage and other low added value, and less high-end titanium materials are used. However, with the promotion of China's aerospace industry, the demand space for aerospace titanium materials will expand rapidly.
Since 2018, the sales growth of titanium materials in China's aerospace industry has continued to increase. According to the statistics of China Nonferrous Metals Industry Association, in 2020, China's demand for titanium materials in the high-end aerospace field will be basically the same as that in 2019, but the total volume will increase to a certain extent year-on-year (4628 tons). From 2018 to 2020, the sales growth of titanium materials in China's aerospace industry will be 15%, 22% and 37% respectively, and the growth rate will continue to increase and be higher than the overall growth rate of titanium materials. We expect that in the next 3-5 years, the demand in the high-end aerospace field will show an accelerated growth trend.
Amanda
Company: Baoji Dynamic Trading Co., Ltd
Country:China
Add:Baoti road,Jintai,Baoji city,Shaanxi,China
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Website:www.jm-titanium.com
