1. Overview of the world titanium industry in 2017

In  2017, the world economic growth rate has improved markedly, the labor  market has continued to improve, commodity prices have risen, and  international trade growth has increased. At  the same time, international direct investment has grown slowly, global  debt has continued to accumulate, and financial markets have  experienced bubbles.

The  world titanium industry has been affected by the stabilization of the  global economy. Titanium demand in the fields of aerospace, general  industry, energy and petrochemicals has begun to rise, resulting in an  increase in the world titanium industry.

In  2017, the titanium industry of the United States, Japan and Russia was  affected by the growth rate of the world economy. The demand for  titanium processed materials in the aerospace and general industry began  to rise. The output of Russian titanium processed materials reached  26,000 tons.

2. Development Status of China's Titanium Industry in 2017

2. 1 Overview of the economic operation of titanium industry

2.1.1 Capacity

In  2017, the production capacity of China's titanium sponge increased by  5.7% compared with 2016, reaching 93,000 tons. The production capacity  of seven domestic sponge titanium production enterprises is equivalent  to that of the previous year. Only the production capacity of two sponge  titanium production enterprises in Luoyang Shuangrui and Chaoyang  Parkson The  increase has been achieved. At present, the capacity utilization rate  of the top five full-scale sponge titanium production enterprises in  China is over 90%, and the overall operating rate of the domestic sponge  titanium industry is over 80%.

According  to the statistics of 30 titanium ingot production enterprises, the  production capacity of domestic titanium ingots in 2017 increased by  8.7% compared with 2016, reaching 146,700 tons, mainly due to the new  smelting equipment of domestic high-end titanium production enterprises  in the past two years.

2.1.2 Production

(1) Titanium concentrate

According  to the Panzhihua Vanadium and Titanium Industry Association, China  produced a total of 3.8 million tons of titanium concentrate in 2017, of  which the output of Panxi was 2.6 million tons, an increase of 8.8%  year-on-year, accounting for 68.5% of the total domestic output;  imported titanium concentrate 3.3 million tons, a substantial increase of 29.5%.

(2) Sponge titanium

In  2017, 9 companies in China produced a total of 72,922 tons of titanium  sponge, an increase of 8.7% over the production of 2016 (67077 tons),  the third consecutive year of growth. As shown in Table 1 below.

Table 1. Production and proportion of sponge titanium in China in 2017 (t)

(3) Titanium ingot

According  to the statistics of 30 companies, China produced a total of 71,022  tons of titanium ingots in 2017, an increase of 6.80% over 2016.  Excluding the output of the three newly added titanium smelting  enterprises, the actual growth rate was 4.28%. As shown in Table 2 below.

Table 2. Production of major titanium ingot production enterprises in China in 2017 (t)

(4) Titanium processing materials

According  to the statistics of 30 domestic manufacturers of titanium materials,  in 2017 China produced a total of 55,404 tons of titanium processed  materials, an increase of 12.0% year-on-year. The output is shown in  Table 3 below.

Table 3, Statistics on production and operation of national titanium production enterprises in 2017 (t)

2, 2 industrial structure

The  changes in the proportion and output of various types of titanium  products in the past three years are shown in Table 4 below.

Table 4, the proportion of various types of titanium in China in the past three years (%)

In  terms of titanium product structure, it can be seen from the above  statistics that the output of titanium and titanium alloy sheets  increased by 13.4% in 2017, accounting for 55.1% of the total titanium  production in that year, of which titanium coil production accounted for  more than half. The  output of bars decreased by 11.6% year-on-year, accounting for 17.8% of  the annual titanium production; the output of pipes increased by 25.5%  year-on-year, accounting for 15.5% of the annual titanium production;  except for castings and bars, the rest The total output of forgings, wire and other products increased significantly year-on-year.

In  terms of industrial distribution, it can be seen from the above  statistics that the main production of sponge titanium is distributed in  Liaoning, and the output of five enterprises accounts for nearly half  (44.9%) of the country.

The  production of titanium and titanium alloy bars is mainly concentrated  in Shaanxi, and the output of the three main production enterprises  accounts for 61.0% of the total.

The  production of titanium and titanium alloy ingots is mainly concentrated  in Shaanxi, and the output of eleven major production enterprises  accounts for about 40% of the national output.

The  output of the three major titanium plate producers in Shaanxi also  accounted for 34.6% of the country. The production of titanium pipes was  mainly concentrated in the Yangtze River Delta region. The output of  the five main production enterprises accounted for 34.2% of the total.

In  summary, in addition to titanium rods, the production distribution of  titanium and titanium alloy ingots, titanium tubes and titanium sheets  of major titanium production varieties are gradually dispersed.

2, 3 market and price

2, 3, 1 sales

In  2017, the total sales volume of China's sponge titanium was 72,922  tons, the net export was negative 1944t, and the domestic sales volume  was 74,866 tons, an increase of 9.3%.

In  2017, the total sales volume of China's titanium materials was 55,130  tons, the net export volume was 8,385 tons, and the domestic sales  volume was 46,745 tons, a substantial increase of 28.4% year-on-year.

2, 3, 2 demand allocation

In  2017, the sales volume and proportion of titanium and titanium alloys  in different fields in China are shown in Table 5 and Figure 1. The  sales volume of China's titanium and titanium alloy products in  different fields in 2017 is compared with the same period.

Table 5, sales volume of major titanium processing materials enterprises in different application fields in 2017/t

Table 6. Comparison of the application of titanium in China in different fields in the past three years

2, 3, 3 price

According  to the statistics of the titanium, zirconium and hafnium branch, the  price trend of China's first grade titanium sponge and representative  TA2, 3.0mm thick standard titanium plate in 2017 is shown in Figure 2  and Figure 3.

2, 4 import and export trade

Table 7. Import and export statistics of China's titanium metal in 2017

Table 8. Changes in the import and export volume of titanium products in the past three years, t

3. Analysis of the economic operation status of China's titanium industry in 2017

In  2017, China's economic supply-side structural reforms were further  deepened. The Chinese titanium industry has withstood the market's large  fluctuations and the environmental pressures of the state, provinces  and cities. Under the guidance of relevant national and military  integration, Industry 4.0 and the Belt and Road Initiative, Under  the impetus of various ministries and commissions, such as quality  improvement and innovation, driven by transformation and development,  China's titanium industry has gradually emerged from a trough and  entered a new round of rising channels, showing some different  development characteristics from the past. Developed towards many positive aspects.

3, 1 analysis of industrial restructuring

After  the market digestion and absorption in previous years, China's titanium  industry has gradually got rid of the pressure of destocking in 2017.  The structural adjustment of the industry has achieved initial results.  From the low-end demand in the past and the structural excess of  titanium products, it has gradually turned to the high-end. Demand, industrial structure gradually turned to aerospace, ship and high-end chemical and other fields. Titanium  smelting enterprises maintain the status quo, and the small and  medium-sized enterprises of titanium processing gradually widen the gap.

In  2017, with the improvement of the titanium dioxide market, the  environmental pressure of raw material production and the shortage of  titanium concentrates, the domestic titanium raw material prices  continued to rise, which also led to the bottoming out of the price of  titanium sponge and titanium. In June of the year, the price of grade 1 sponge titanium rose by about 20% from the previous year.

In  2017, during the structural adjustment process, due to the increase in  production capacity of the two companies, China's sponge titanium  capacity increased by 5.7% compared with 2016. However, driven by rising  raw material prices and high-end demand in the first half of the year,  the production of titanium sponge was higher than that of the previous  year. It increased by 8.7% to reach 72,922 tons.

In  2017, due to the expansion of production capacity of some enterprises,  the production capacity of China's titanium ingots increased by 8.7%  compared with 2016. Under the market demand, the output of titanium  ingots also increased by 6.8%.

In  2017, driven by the demand of ships, marine engineering, sports and  leisure, high-end chemicals (petrochemical, environmental protection,  etc.) and military industry, the output of China's titanium processed  materials increased by 12.0% year-on-year to 55,404 tons, and the  titanium industry gradually came out of the trough.

In  2017, taking the top ten major titanium producers in China as an  example, titanium sales accounted for 77.1% of the total, which was  higher than the previous year, and the industrial concentration  gradually increased.

At  present, although the “de-capacity” of China's titanium industry has  basically come to an end, with the improvement of the market and the  rise of the price of titanium sponge, some enterprises that have stopped  production, new low-cost sponge titanium projects and original  expansion plans are eager to aim. In the sponge titanium market, capacity expansion is on the verge.

The  “de-capacity” process of titanium ingots will be more difficult, mainly  because the low-end melting equipment can be idle and ready to use. At  present, there are still many enterprises in the new smelting equipment,  mainly based on equipment above 3t, gradually replacing the low-end  small The  smelting equipment is mainly for the high-end market demand of  aerospace, medical and marine engineering. In 2018, several enterprises  will complete the installation and commissioning of the equipment and  start production.

In  terms of titanium processing materials, there will be several new  high-end titanium alloy fast forging, precision forging and hot rolling  equipment in 2018, which are also aimed at high-end market demand in  aerospace, medical and marine engineering.

3, 2 analysis of business situation

In  2017, under the demand of high-end chemical, aerospace, shipbuilding  and electric power industries in China, the titanium market has risen in  volume and price, and has gone out of the market situation that has  been rare in recent years. Especially the price of titanium raw  materials has increased compared with 2017. More than 30%.

In  terms of import and export trade, the import volume of titanium sponge  increased by 20.8% (3844t) in 2017, and the export volume also increased  by 8% year-on-year. This also reflects the explosive growth of demand  for foreign high-end sponge titanium due to high-end demand growth in  China. increase;

In  2017, the import and export volume of titanium processed materials in  China has a certain year-on-year growth. In terms of imports, the import  volume of titanium strips and aviation titanium plates for high-end  fields such as nuclear power and board exchange has increased  significantly (about 80%). It  reflects that the quality of domestic titanium materials in the above  high-end fields is still difficult to meet domestic demand.

The  import volume of titanium welded pipe is due to the improvement of the  quality of titanium processing enterprises in China in the past two  years, which partially replaces the imported welded pipe for power  stations, and the import volume has decreased by 20.3%; in terms of  exports, the export volume of titanium pipes has decreased by 376 tons (  16.1%),  the export volume of other varieties of titanium wire, titanium belt,  titanium plate and titanium products has increased a certain amount  compared with the previous year, which also reflects that the quality of  the above-mentioned titanium product varieties has a certain  price/performance ratio in the international market. Advantage.

In  summary, through the analysis of the import and export of domestic  titanium in 2017, it can be seen that there is still a certain gap  between the quality of sponge titanium and titanium belts in domestic  high-end demand compared with foreign countries, and through the  production practice in recent years, domestic Manufacturers  have gradually occupied a place in the international market for the  cost performance of titanium welded pipes, titanium wire and titanium  products.

In 2017, China's titanium industry enterprises also produced some flaws in their development.

In  2017, Guizhou Zun Ti (Group) Co., Ltd. implemented 11 scientific and  technological projects, among which the “Improving Sponge Titanium  Product Structure” project made breakthroughs in key technologies, and  it is expected to solve the product structure compactness faced by the  reduction distillation furnace. Problems, strive for success and promote the application.

In  2017, Baoti Group took “Catch up and surpass” as the main line, and  focused on improving the quality and efficiency of development. The  annual operating performance index was completed throughout the year,  and the output of titanium products, the leading product, increased by  5.8%.

Baoti  Titanium Co., Ltd. has been rated as the best, best and only qualified  supplier by Liyang Hangfa Company, Aerospace Third Institute, Chengdu  Hangfa Company and Aerospace Science and Technology Group. It has  directly or indirectly developed and produced 21 kinds of titanium alloy  materials of various specifications for C919. It guarantees the supply of more than 130 tons of titanium alloy sheets, rods, pipes and forgings.

Domestic  customers have made breakthroughs in ship assembly plants and design  institutes, and the order quantity has increased by 47.4% year-on-year;  the foreign trade market has shown a good development trend of  increasing volume and price increase, further strengthening cooperation  with international aviation distributors, and fulfilling orders for  Boeing Company 193t, The  order quantity of aviation materials reached 41% of the annual export  orders; aiming at the demand of international petrochemical projects,  the orders for titanium for international chemical industry accounted  for 47% of the annual exports.

Western  Superconductor won the national manufacturing single champion champion  in the “Aerospace Titanium Bar” project in 2017; at the same time, the  company successfully developed the world's first set of high temperature  superconducting current limiter magnets; in the high field Nb3Sn  superconductor Wire  preparation technology, low-cost preparation technology of  superconducting wire for MRI, multi-core MgB2 superconducting wire  preparation technology, XX Ti55531 alloy cake blank, commercial fly XXX  alloy forging blank preparation technology, TC18 alloy bar  microstructure uniformity control technology The  warhead has developed high-performance titanium alloy materials, and  the fasteners have achieved important technological breakthroughs in the  development of XX ultra-high-strength alloy small bars.

In  2017, Yunnan Titanium Industry Co., Ltd. successfully realized the TC4  ingot VAR+EB double-smelting smelting, the TA10 ingot EB furnace batch  production, and the stable production of rare metal EB furnaces such as  nickel and zirconium. Pipe, bar, wire, wire production has broken through.

In  2017, Nanjing Baose Co., Ltd. mainly focused on projects with high  value of large projects and single products, and the market share and  popularity of high-end fields increased significantly. The main  container of the fourth-generation nuclear reactor sulphide-based molten  salt reactor and its subsidiary structure products were undertaken. Substantial  steps have been taken in the application of nuclear power; the world's  largest MMA and PTA oxidation reactors have been created to have a huge  impact, bringing the company a contract of more than 400 million yuan.

Nanjing  Baotai Special Materials Co., Ltd. started the first phase of the 2017  Intelligent Technology Transformation Project for the Innovation and  Achievement Transformation of Provincial Enterprises in Nanjing.

At  present, China's titanium industry has entered the new normal of  development. At present, the state strongly advocates the integration of  military and civilian. Under the favorable situation, the titanium  industry enterprises should seize the golden opportunity and actively  participate in the research and production of military and civilian  counterpart products to improve the survival of enterprises. Core competitiveness, through the capital market, seeks greater development opportunities in market competition.

3, 3 analysis of market supply and demand and consumption

In  the field of titanium consumption, in addition to the metallurgical  industry, the amount of titanium used in the main consumption areas of  China in 2017 has increased to varying degrees, especially in the  high-end fields such as aerospace, marine, power and marine engineering,  continuing 2016. The trend of the year has shown a certain increase.

In  terms of the total volume, the ship sector has the largest growth rate,  increasing by 1,106 tons, followed by electricity (952t), sports and  leisure (682t) and aerospace (567t), which also reflects the country's  industrial development direction and China. The  development trend of titanium processed materials in the high-end  field; and the sudden emergence of the ship field, indicating that the  demand for titanium processed materials in this field has begun to break  out, but the need to further improve the development of standards and  material systems.

In  2017, the demand for titanium processed materials in the high-end  fields of aerospace, medicine, marine and marine engineering in China is  basically the same as that in 2016, but the total amount has increased  by a certain amount (2394t) year-on-year. It is expected that in the  next 3 to 5 years, the above Demand in the high-end sector will show an acceleration of growth.

4, the existence of sudden