This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Titanium Producers Positioned For Growing Demand

LONDON, August 1, 2013 /PRNewswire/ --

The global titanium market recovered rapidly from the sharp downturn in demand in 2009 and by 2011 demand for mill products had reached 165kt, the highest level experienced by the industry.  While growth stuttered in 2012, Roskill is predicting growth of 4-5%py through to 2018.  

An increasingly differentiated industry

In Europe and North America, aerospace applications regularly account for more than 60% of demand.  Production of titanium sponge and mill products in these regions is also largely orientated towards the aerospace market.  The rapid growth in production of sponge and mill products in China serves the growing domestic demand in industrial applications, which accounted for more than 80% of consumption in 2012.

Despite the volatility of the market and the development of other applications, aerospace remains the principle distinct market for titanium, accounting for a buy-in weight of around 60kt of mill products in 2012.  The new generation of large passenger aircraft, the A380 and A350 from Airbus and the B787 from Boeing use greater volumes of carbon fibre reinforced polymers (CFRP) in the airframe.   CFRPs are compatible with titanium, but not with aluminium, which ensures that titanium's position as a key material in the manufacture of aircraft is assured and growing.  The Russian company, VSMPO, has emerged as the leading supplier of mill products to the aerospace industry, supplying in excess of 20kt in 2012.

The use of titanium in industrial applications is more price sensitive, as specifications are not as rigorous as they are in aerospace and there is competition from other high performance alloys.  This price sensitivity is more apparent in Europe and North America than in China, which now accounts for half of all demand in industrial applications. It appears that titanium is selected in preference to (less costly) materials for use in Chinese industrial plants.

Growing output of titanium sponge

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs