The Rapid Expansion Of Civil Titanium Alloys Has Led To The Rapid Growth Of Downstream Demand.

The rapid expansion of civil titanium alloys has led to the rapid growth of downstream demand.

 The amount of titanium used in the main models of civil airliners such as Boeing and Airbus has gradually increased.Reducing aircraft weight, increasing carrying capacity, and reducing fuel consumption are important bases for airlines to choose aircraft. Increasing the amount of titanium is of great significance for the development of civil airliners in the future.With the development of the times, the amount of titanium used in the main models of Boeing and Airbus has gradually increased, and the amount of titanium used in the B787 has reached 15%.

The commercialization of the C919 large airliner has promoted the expansion of demand for titanium alloys.The C919 large airliner is a large jet civil aircraft developed by our country is suitable with international civil aviation regulations and which also have independent intellectual property rights. It successfully made its first flight in 2017.After considering the maturity, cost and delivery cycle of titanium alloys, C919 adopts six types of titanium alloy grades: low strength and high plasticity, medium strength and medium toughness, medium strength and high toughness, high strength and high toughness, and system materials.The product forms cover forgings, thick plates, profiles, pipes, wires, etc., and are used in the hanging, nose, central wing, outer wing, tail wing and other parts of the aircraft.The delivery of C919 is imminent, the industrialization process of domestic large-scale aircraft is about to accelerate, and China's civil aviation manufacturing industry will also usher in a golden period of its own development, with a 100 billion market slowly opening up.

Aircraft orders + deliveries continue to increase.On February 9, 2006, the State Council issued the “Outline of the National Medium- and Long-term Scientific and Technological Development Plan (2006-2020)”, which regards "large Airplane" as one of the 16 major projects.in March 2019, the order volume of C919 has reached 815sets, Also the order volume of the new turbofan regional aircraft ARJ21-700 has reached 592 as of February 2019.The development of domestic commercial aircraft has promoted the Chinese aviation market to enter a new stage, and there is huge room for future growth.The domestic large-scale aircraft market has broad space, and the cumulative demand for titanium for civil aviation will reach 30,000 tons in the next five years.According to COMAC data, compared with ARJ21's titanium content of 4.8%, the proportion of C919 titanium alloy has reached 9.3%, and the amount of stand-alone titanium has reached 10.11 tons.With the continuous expansion of China's civil aviation market, it is expected that the demand for titanium for domestic large aircraft will reach 30,000 tons in the next five years.

It is expected that the domestic demand for military+civilian aerospace titanium will total 110,000 tons in the next five years, with a compound growth rate of 16%.Since 2016, under the guidance of supply-side reforms, backward production capacity has been gradually shut down and eliminated, and industrial concentration has continued to increase.Considering that the current proportion of domestic aerospace titanium is much lower than the global proportion of aerospace titanium accounting for 50% of the total demand for titanium, it is expected that the domestic aerospace titanium market demand will total 110,000 tons in the next five years, with a compound growth rate of 16% in the industry.%