Titanium and titanium alloy high-end products have greater development potential in the future

There are more than 160 titanium alloy production enterprises in China. There are a small number of enterprises with good independent research and development ability, high product technology content and excellent brand characteristics. Most of the enterprises concentrate in the middle and low-end fields, especially in the low-end market with excess capacity and fierce competition. China's petrochemical, aerospace, power, ocean engineering and other industries for high-end titanium alloy products continue to be strong demand, titanium alloy market demand is shifting from low-end to high-end fields. However, the number of high-end titanium alloy manufacturers in China is small and the market supply is insufficient.

At present, only 10% of China's titanium alloy products are used in high-end fields, while 50% of the United States' titanium alloy products are used in high-end fields. There is a big gap between China's titanium alloy industry and developed countries. With the gradual production of large aircraft in China and the continuous upgrading of military aircraft, the demand for titanium alloy in the aviation industry will continue to increase. From the perspective of the import unit price of China's titanium alloy products in 2018, the import unit price is much higher than the export unit price, indicating that China's high-end titanium alloy products are in short supply and the market is dependent on imports. The industry needs to continuously improve its R&D and innovation capabilities, improve product performance, develop new functional products, and accelerate the pace of import substitution in high-end titanium alloy market.

In 2017, China's titanium production was around 33 million tons, and in 2018, industry production declined. Influenced by weak market demand, high port inventory, and unoptimistic economic situation, in 2018, large enterprises in China's titanium alloy industry began to operate at a relatively high rate, while small enterprises resumed production cautiously, and the overall production of the industry declined. In the case of the growth of high-end titanium alloy market demand in China, large enterprises with higher technical level have greater development potential in the future.

According to industry analysts said the growing importance of the national policy for high-tech industry, aerospace, shipbuilding, Marine engineering, domestic transportation, military areas such as the growing demand for high-end materials, high-end titanium alloy production strategy is of great significance, titanium industry to adjust product structure, the shift to high-end fields become inevitable trend. Therefore, the technical requirements of the titanium alloy industry for the production enterprises will be more and more high, enterprises can only continue to improve the core competitiveness to obtain further development, in the future, the titanium alloy industry entry technical barriers will continue to increase.

According to the 2019-2023 Titanium Alloy Industry Market Deep Survey and Investment Prospect Forecast and Analysis Report, the world's titanium alloy production capacity is mainly concentrated in China, the United States, Russia, Japan and other countries. In 2010, China surpassed the United States to become the world's largest titanium alloy producer. American titanium alloy products are mainly high-end products, mainly used in the aviation field, while China's titanium alloy products are mainly concentrated in the low-end field, low technical content, mainly used in the industrial field. Compared with the United States, China's titanium alloy industry is large but not strong, and its overall competitiveness is weak.