The price difference between high and low end sponge titanium is stable
2022-03-14
From a global perspective, titanium material demand mainly comes from high-end fields, among which aerospace industry accounts for as much as 46% of titanium material consumption; The domestic demand for titanium materials shows a trend of polarization. Low-end titanium materials are mainly used in civil fields such as chemical industry, while high-end titanium materials are mainly used in aerospace, shipbuilding and other fields.
On the product level, high-end titanium materials are mainly used for aero-engine blades, fuselage materials and aviation fasteners, while civil titanium materials are mainly used for logging tools, downhole packers and oil sleeves in the petrochemical industry. In 2019, 51% of titanium materials in the domestic market were used in the chemical industry, 18% in aerospace, and 8% in shipbuilding and Marine engineering.
According to the prospectus of West Superconductor, the supply of west Superconductor titanium materials is mainly military titanium materials such as aviation and ships, and the purchased titanium sponge is mainly grade 0, while the specifications of titanium sponge purchased for civil titanium alloy are relatively low. Therefore, the price difference between grade 0 sponge titanium and low grade sponge titanium can reflect the relative strength of military and civilian titanium materials.
