Gr9 Titanium Alloy High-end Products Have More Potential For Future Development

There are more than 160 Gr9 titanium alloy production enterprises in China, the number of enterprises with better independent research and development capability, higher product technology content and better brand characteristics is relatively small, and most of the enterprises are concentrated in the middle and low-end areas, especially in the low-end market overcapacity, and the competition is relatively fierce. China's petrochemical, aerospace, electric power, ocean engineering and other industries continue to demand high-end titanium alloy products, titanium alloy market demand is shifting from low-end to high-end areas. However, the number of high-end titanium alloy production enterprises in China is relatively small, and the market supply is insufficient.

At this stage, only 10% of China's titanium alloy products are used in high-end fields, while 50% of the U.S. titanium alloy products are used in high-end fields, the gap between China's titanium alloy industry and developed countries is large. With the gradual release of China's large aircraft manufacturing and the continuous upgrading of military aircraft, the demand for titanium alloy in the aviation industry will continue to rise. From the point of view of the unit price of imported titanium alloy products in China in 2018, the unit price of imports is much higher than the unit price of exports, indicating that the supply of high-end titanium alloy products in China is insufficient, and the market is dependent on imports. The industry needs to continue to improve its R&D and innovation capabilities, improve product performance, develop new functional products, and accelerate the pace of import substitution in the high-end titanium alloy market.

In 2017, China's titanium production was around 33 million tons, and in 2018, the industry's production declined. Affected by the weak market demand, high port inventory, the economic situation is not optimistic and other factors, in 2018, China's titanium alloy industry, large enterprises have a better start rate, small enterprises resume production cautiously, 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 a higher level of technology have more potential for future development.

According to industry analysts, the national policy on high-tech industry is increasing, the domestic aerospace, shipping, marine engineering, transportation, military and other fields of high-end materials demand continues to grow, high-end titanium alloy production is strategically important, titanium alloy industry to adjust the product structure, the transfer of high-end areas has become an inevitable trend. Therefore, the titanium alloy industry will have higher and higher technical requirements for production enterprises, and enterprises can only obtain further development by continuously improving their core competitiveness, and in the future, the technical barriers to entry in the titanium alloy industry will continue to improve.

According to the 2019-2023 Titanium Alloy Industry Market Depth Research and Investment Prospect Forecast Analysis Report, the global titanium alloy production capacity is mainly concentrated in China, the United States, Russia, Japan and other countries, and in 2010, China surpassed the United States to become the world's largest titanium alloy producer. U.S. 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 middle and low-end areas, with lower technological content, mainly used in the industrial field. Compared with the United States, China's titanium alloy industry is big but not strong, the overall competitiveness is weak.