Production: maintain growth trend for consecutive years
Titanium is characterized by low density, high specific strength, low thermal conductivity, good resistance to high temperature and low temperature, and strong corrosion resistance. It was first used in high-tech fields such as aerospace. Now its application fields have expanded to chemical industry, petroleum, power, seawater desalination, construction, daily living appliances and other fields. It is known as "modern metal" and "strategic metal".
The titanium industry plays an important role in the development of the national economy. It is of strategic significance to the development of national defense, economy and science and technology. It is an important raw material industry supporting the progress of cutting-edge science and technology, and also a basic industry for the development of the national economy and the upgrading of industries. China attaches great importance to the development of titanium industry, which is supported by the state and local governments at all levels. At present, only the United States, Russia, Japan and China have mastered complete titanium industrial production technology. In 2021, the output of titanium concentrate in China will be 2.857 million tons, with a year-on-year growth of 5%, of which the output in Panxi will account for 87.2%.
In 2021, the domestic titanium industry market will be generally good. The middle and low-end product market will benefit from the demand of PTA and chemical industry, showing a significant year-on-year growth trend. The high-end product market will benefit from the upgrading and localization of aerospace and other fields, with strong demand. The titanium industry market will continue to grow steadily. According to the statistics of China Nonferrous Metals Industry Association on 29 major titanium processing material manufacturers in China, the output of titanium processing materials in China will maintain a positive growth for the seventh consecutive year in 2021, with the output of 135900 tons, a year-on-year growth of 40.1%. The reason for such a large growth is that the market demand is increasing, leading enterprises continue to expand their output, and the statistical caliber will be adjusted in 2021.
From the perspective of production structure, plates have always been the main variety in the output of titanium processing materials. In 2021, the output will reach 70130 tons, with a year-on-year growth of 21.7%, accounting for 51.6% of the total output of titanium processing materials. The next are bars and pipes. In 2021, the output will increase significantly, reaching 24974 tons and 15402 tons, respectively, with an increase of 60.6% and 62.3%.
Shaanxi is the province with the largest scale of titanium industry development in China. In 2021, Shaanxi will account for 44.3% of China's titanium processing material output, mainly in Baoji City, Shaanxi Province. In contrast, the vast majority of titanium ore reserves in China are distributed in Sichuan, Hebei and other places, accounting for 92% of the total titanium ore reserves in China. The titanium ore reserves in Shaanxi Province are very small. After decades of development, Shaanxi Province has formed a complete product chain of "sponge titanium - titanium ingots - titanium processing materials - titanium alloys - titanium composites - titanium deep processing products".
From the perspective of production enterprises, China's titanium processing materials industry is highly concentrated, and the market share is mainly occupied by several leading enterprises. In 2021, the market share of the first three enterprises will reach 47.0%, and the market share of the top ten enterprises will reach 78.7%. Among them, Baoti Group is the largest titanium and titanium processing materials production enterprise in China, accounting for more than 20% of the market
share in China.
Demand: mainly chemical and aerospace applications
With the continuous development of China's high-end manufacturing industry, the sales volume of titanium processing materials in China has increased rapidly, from 43700 tons in 2015 to 124500 tons in 2021, and the demand has gradually become high-end. However, the limited production technology in China has led to insufficient capacity of high-end products in the market. The fierce competition between middle and low-end products, product convergence and homogeneity are still obvious, and the supply and demand structure still needs to be further improved. With the strategic adjustment of the national economic structure and the industrial transformation and upgrading, the titanium industry will still have a large market development opportunity in aviation, aerospace, large aircraft, shipbuilding, petrochemical, information technology, high-end equipment manufacturing, new energy, new materials, titanium for domestic use, deep-sea and other industries in the future, and the demand will further increase. However, the demand in aerospace and military industries is mainly high-end products, and the entry threshold is high, Therefore, most enterprises can hardly enjoy the dividends they bring.
The chemical industry is the largest application field of titanium materials in China, such as condensers and air cooling heat exchangers in oil refining, cooling tubes and titanium anodes in chlor alkali industry, and main structural parts of electrolytic cell equipment in electrolytic cell industry and electroplating industry. In 2021, the demand for titanium processing materials in this field will be 58591 tons, accounting for 47.1% of the total sales. The second is aerospace. In recent years, with the rapid progress of China's aerospace technology, the demand for titanium processing materials in this field has also maintained a rapid growth, with the demand of 224.5 million tons, a year-on-year growth of 30.3%, accounting for 18.0%. It can be applied to rocket engine shells, liquid fuel engine combustion chambers, docking pieces, engine booms, engine blades, protective plates, ribs, wings, landing gear, etc. in aerospace.
Import and export
China's titanium processing technology continues to improve, and its recognition in the world has improved. The number of exports is far greater than the number of imports. In 2021, China has successfully transformed from a trade deficit to a trade surplus, and has been able to achieve self-sufficiency in terms of low-end products. In the first half of 2022, the export volume of China's titanium processing materials will be 12800 tons, the export amount will be 356 million dollars, and the average price will be 27800 dollars/ton. However, due to limited technology, there is still a big gap in the high-end trading market, and the import dependence is high. In the first half of 2022, the import volume will be 3500 tons, the amount will be 276 million dollars, and the average price will be 79.0 dollars/kg.
From the perspective of import amount in 2021, China mainly imports from the United States, Japan, Russia and other countries, with US $173 million imported from the United States, accounting for 36.7% of the total; The import of 86 million dollars from Japan and 40 million dollars from the Russian Federation is mainly due to the fact that the development level of these three places is at the forefront of the world and they have mastered complete titanium industrial production technology.
From the perspective of export amount, Taiwan, China, the United States, Germany and other places are the main exporters of titanium materials in China. In 2021, the export amount will be 59 million US dollars, 55 million US dollars and 45 million US dollars respectively, accounting for nearly 30% of the total export amount.
Shaanxi's titanium industry has developed rapidly and is an important base for the development of China's titanium industry. Its export scale accounts for nearly half of the country's total. In 2021, Shaanxi's titanium processing materials export amount will reach 263 million US dollars, with a year-on-year growth of 22.4%, accounting for 46.8% of the country's total; It is followed by Jiangsu Province, Shanghai City and Guangdong Province, accounting for 12.0%, 8.3% and 7.2% respectively.
In the future, with the continuous development of China's aerospace, military and other high-end manufacturing industries, the demand for high-end titanium products will also continue to increase. The country's emphasis on high-end products is growing. Enterprises and research institutions will continue to increase their research and development efforts on high-end products. China's titanium industry will accelerate its pace towards high-end and help China develop intelligent manufacturing.
