Titanium industry capacity expansion
By the end of 2020, the production capacity of titanium sponge in my country has increased by 12.0% compared to 2019, reaching 177,000 tons. This is mainly due to the fact that large domestic titanium sponge manufacturers are optimistic about the market outlook and continue to merge, reorganize and expand. The top three sponge titanium producers in my country with the largest output will have their production capacity expanded to varying degrees in 2020, especially Luoyang Shuangrui Wanji Titanium Industry Co., Ltd., whose production capacity has increased by 10,000 tons. In 2020, the overall operating rate of my country's sponge titanium industry will reach 70%.
According to statistics from 33 titanium ingot manufacturers, the production capacity of my country's titanium ingots in 2020 will increase by 11.8% over 2019, reaching 199,000 tons.
Titanium industry production has increased significantly
Titanium concentrate: According to the statistics of Panzhihua Vanadium and Titanium Industry Association, China will produce 6.33 million tons of titanium concentrate in 2020, a year-on-year increase of 32.7%. Among them, the output of Panxi area was 5.11 million tons, a year-on-year increase of 35.5%, accounting for 80.7% of the total domestic output; the imported titanium concentrate was 3.01 million tons, a year-on-year increase of 15.3%.
Titanium sponge: In 2020, 12 enterprises in my country will produce 122,958 tons of titanium sponge, an increase of 44.9% over 2019, the sixth consecutive year of growth.
Titanium ingots: According to statistics from 33 companies, in 2020, my country will produce a total of 119,937 tons of titanium ingots, an increase of 35.2% over 2019, which has been increasing for six consecutive years.
Titanium processing materials: According to the statistics of 32 major domestic titanium production enterprises in China, in 2020, my country will produce 97,029 tons of titanium processing materials, a year-on-year increase of 28.9%, which has been increasing for 6 consecutive years.
In terms of the structure of titanium products, in 2020, the output of titanium and titanium alloy sheets increased by 47.5% year-on-year, accounting for 59.2% of the total output of titanium materials that year. Among them, the output of titanium strips and coils accounted for more than half, and the output of bars also increased by 16.9% year-on-year, accounting for about 16.0% of the annual titanium output; the output of pipes decreased by 6.5% year-on-year, accounting for 9.8 of the annual titanium output. %; The output of forgings increased by 7.3% year-on-year, accounting for 5.8% of the annual titanium output; the output of
Titanium Wire increased the most, reaching 55.0%, and the output of other titanium products also increased by 11.2%.
In 2020, my country’s total sales of sponge titanium was 122,958 tons, net exports were minus 4,175 tons, and domestic sales were 127,133 tons, a significant increase of 50.7% year-on-year.
The growth of my country's titanium industry quickly reached the best level in history
In 2020, driven by the needs of mid-to-high-end industries such as aerospace, shipbuilding, marine engineering, chemical (CPA high-end equipment), shipbuilding, sports and leisure, my country's titanium industry will increase the output of sponge titanium by 44.9% year-on-year, exceeding 100,000 tons for the first time; The output of titanium processed materials increased by 28.9% year-on-year, reaching the best level in history, and the output was close to the 100,000-ton level. The output of titanium sponge and titanium materials has shown rapid growth for 6 consecutive years. The top ten major domestic titanium material manufacturers accounted for 79.9% of the total titanium material sales, which was a slight increase over the previous year, and the degree of industrial agglomeration was further improved.
In 2020, despite the sudden impact of the epidemic, China’s titanium industry has been under certain pressure in terms of foreign trade and domestic trade. However, under the strict control measures of the country, the national economy will soon bottom out and rebound. China’s titanium industry is no matter in terms of output or production capacity. The demand for titanium in high-end fields such as high-end chemical industry, aerospace, marine engineering, shipbuilding, sports and leisure is increasing rapidly, with an average growth rate of more than 20%. The medical industry Affected by the epidemic, demand has declined, and low-end power and salt industries have also seen certain growth, but the increase is not large, and the overall profitability of the industry has further increased.
In 2020, driven by the demand of high-end industries represented by military industry, my country’s titanium industry has witnessed steady and rapid growth in volume and prices for the sixth consecutive year. Among them, the price of titanium sponge titanium (grade 1), the raw material for titanium, has been increasing since June 2020. After bottoming out in the month and rebounding, by the beginning of 2021, it had risen by 47%. The prices of titanium processed materials, especially aviation titanium alloy materials, have also risen simultaneously.
In terms of import and export trade, affected by the international epidemic, in 2020, China’s imports of sponge titanium will drop by 33.8% (4723 tons), while exports will drop by 47.6% (548 tons); China’s imports of titanium processed materials will drop by 24.4% (6139 tons), the export volume decreased by 27.1% year-on-year (15246 tons); in terms of imports, only titanium alloy wires and titanium alloy powders used in high-end areas such as aerospace and aerospace continued to maintain steady growth, while imports of other varieties fell. This also reflects that domestic titanium materials are still difficult to meet domestic demand in high-end fasteners and 3D printing, but they are basically stable. It also reflects that China's high-end titanium alloy thin and thick plates still depend on foreign countries; In terms of exports, the export volume of almost all varieties has decreased year-on-year, which also reflects that the international titanium market has been affected by the epidemic and the demand for titanium has decreased by nearly 30%.
To sum up, at present, my country's high-end demand for aviation-grade titanium sponge, titanium powder for 3D printing, titanium alloy rods and wires for aviation fasteners, and titanium alloy wide and thick slabs for ships are still in batch stability. There is a certain gap with foreign countries and still need to be imported. However, through the equipment advancement and technological innovation of enterprises such as Baoti Co., Ltd. and Western Superconductor, the gap is gradually narrowing and the product quality is continuously improved.
In 2020, Chinese titanium companies have withstood the adverse effects of the global epidemic and continued to move forward. It is prominently manifested in the domestic large-scale titanium smelting and processing enterprises and the secondary backbone enterprises. Through years of technological innovation and market development, they have achieved gratifying market share and performance growth in all major fields. my country's titanium industry has achieved remarkable growth in terms of production capacity, output and net performance. Profits and other aspects have reached the best level in the past 10 years.
May 06, 2021
