In 2022, aviation titanium materials will form a new pattern of one super and many strong

In 2022, aviation titanium materials will form a new pattern of "one super and many strong"

The middle reaches of the titanium alloy industry chain include aerospace forging enterprises such as AVIC Heavy Machinery, Triangle Defense, Parker New Materials, and Aerospace Technology. Raw materials are still the largest component of the cost of midstream enterprises in the industry chain. For example, the direct material cost of the triangle defense die forging business accounts for 70.45%, and the raw material cost of the aerospace technology aviation forging business accounts for 83.28%. Since the die forgings of the triangular defense are mainly fuselage forgings, the proportion of titanium alloys is higher, and Aerospace Technology mainly produces aviation ring forgings, so the cost of high-temperature alloys may be higher than that of titanium alloys.

From the single-quarter gross profit rate of Western Superconductivity, it can be seen that the impact of upstream raw material price increases has not yet been reflected in the company's income statement, or because the company adopted the moving weighted average method for the pricing of raw material costs, we judge the first quarter of 2022. And the second quarter may be under pressure from the short-term gross profit margin caused by the rising cost of titanium sponge. In the whole year, with the expansion of upstream military titanium sponge enterprises and the improvement of the full-process sponge titanium production line, the price of military titanium sponge is expected to peak and fall. The company's annual gross profit margin may be in the form of low first and then high.