Boeing and Airbus placed big orders
2022-04-13
Titanium has the characteristics of light weight and high strength, and naturally becomes an indispensable and important raw material for the aviation industry. Russian state-owned VSMpo-Avisma is the world's largest supplier of titanium sponges and materials, accounting for a third of the titanium used by Boeing, compared with 50% for Airbus, the European aerospace giant.
Like natural gas, Boeing of the United States has announced that it will not buy titanium from Russia, but Airbus of Europe has made it clear that it cannot do without Russian titanium in the short term. But for many aerospace and defence companies in the US and Europe, finding sources outside Russia has become a priority. Japanese titanium companies, following Russia's lead, have also taken orders and are working overtime to increase capacity.
Hiromu Tomeba, corporate planning manager for Toho Titanium, was quoted as saying that his company has received a string of orders from customers for an additional 2,000-3,000 tonnes of Titanium sponge by the end of the year as the US airline industry looks for alternative suppliers from Russia. But Tobang Titanium's Japanese rival Osaka Titanium said in an interview that it had not received additional orders.
Tomeba added that U.S. customers are asking us to expand supply because they seem to be worried about future purchases and want to increase inventory. They also want to prepare for the threat to business continuity after Boeing stopped buying from Russia. In order to meet customer demand. Tobon Titanium will make full use of additional capacity from its Saudi joint venture, which opens in 2019, and ship existing inventory from Japan to meet new orders.
It is reported. Tobang Titanium's Saudi plant, originally intended to supply only non-aviation customers, is likely to be approved to supply aircraft manufacturers by the end of April. Tomeba said capacity utilization at the plant is expected to rise to 60 percent by June from 40 percent now, to 70 percent in the third quarter and possibly even higher next year.
Bernstein analyst Douglas Harned also noted in a report last month that manufacturers had stockpiled titanium before the current conflict between Russia and Ukraine, but that supplies could run short by next year if current conditions continue.
