Titanium alloy market atatus &Development trend of titanium alloy industry

Titanium alloy market status

1. Market size

     From 2014 to 2015, affected by the adjustment of my country's national economic structure, the output of upstream titanium sponge declined rapidly and the demand for titanium alloys in traditional downstream industries such as traditional chemical industry and metallurgy declined, resulting in a decline in the output value of titanium alloys, and with the adjustment of my country's industrial structure Initial results have been achieved, and high-end titanium alloy application fields such as aerospace and marine engineering have achieved rapid development. After 2015, the output value of titanium alloys has steadily increased. From 2014 to 2019, the market size of my country's titanium alloy industry increased from RMB 10.81 billion to RMB 14.23 billion, with a compound annual growth rate of 7.11%. In the context of the continuous adjustment and upgrading of my country's industrial structure, the market space for high-end titanium alloys is huge, and the demand for high-end titanium alloys with high added value will increase steadily. It is expected that the market size of my country's titanium alloy industry will exceed 15 billion yuan in 2020.

2. Competitive landscape

     At present, the main enterprises in my country's titanium alloy industry are Western Superconductor (mainly rod and wire), Western Materials, and Baotai Co., Ltd. (complete quality, sponge titanium is self-sufficient and exported). The high-end titanium material orders are concentrated in the two leading companies, Western Superconductor and Baotai, which together occupy more than 95% of the market share, and have formed a relatively stable duopoly competition pattern. Western Superconductor is mainly made of rods and wires, focusing on the aerospace field. Baotai has a complete range of products. Plates, strips, tubes, rods, wires, etc. are widely used in aerospace, which is also worthy of attention.

Development trend of titanium alloy industry

1. Recent price hikes

    Due to demand-driven, the overall price of titanium alloys has increased significantly. Taking the titanium plate with simpler processing level as an example, the price of titanium plate in October 2020 was 94 yuan/kg, and the ex-factory price in October 2021 reached 127 yuan/kg, an increase of 35%. The price of titanium alloy varies with the level of processing materials and product form. The higher the processing level, the higher the price and the higher the profit margin.

2. Policies help the development of the industry

    The titanium industry plays an important role in the development of the national economy and is of strategic significance to the development of national defense, economy and science and technology. my country attaches great importance to the development of the titanium industry, which is supported by the state and local governments at all levels, and is listed as a pillar industry in Shaanxi Province.