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Baoji Titanium Industry Is Expected To Accelerate
Jul 24, 2018

Titanium industry is the foundation of industries such as petroleum, chemical, and aerospace manufacturing. Guojin Securities believes that China's titanium industry is expected to accelerate its clearing, and the relationship between supply and demand continues to improve.

Industry chain urgently needs structural adjustment

China's titanium industry chain is in a state of structural imbalance between high and low supply and demand conditions. China is a large country of titanium ore resources, but the higher purity of titanium concentrate still depends on imports; China's sponge titanium production has ranked first in the world, the overall supply of sponge titanium is much greater than the demand, but the aerospace grade high-end sponge Titanium production capacity is still insufficient.

In the field of titanium processing, China's high-end titanium material production capacity is relatively scarce, almost all of the titanium used in civil aircraft is imported, but the low-end industrial titanium supply is scattered, and the industry leader Baoti is only about 20%, which has become highly competitive. In the Red Sea market, the whole industry is in a state of low profit.

Supply and demand relationship continues to improve

Since the end of 2016, the demand for titanium dioxide has increased, superimposed by the environmental protection group monitoring in some regions at the beginning of this year. The demand for upstream titanium concentrates has increased, supply has tightened, prices have continued to rise, and the price of titanium sponge has also increased by nearly 40%. In the case that the low-end titanium material still has not improved significantly, the traditional rough processing enterprises will face the situation that the cost end is difficult to transmit to the price end and the enterprise profit space is continuously squeezed. According to calculations, if low-end titanium materials cannot be effectively raised, the production costs of a large number of enterprises will not be covered, and market forces will be expected to accelerate the production of titanium roughing.

China's titanium processing industry is mainly concentrated in Baoji. The extensive production of most local titanium processing enterprises has caused great damage to the water quality of the Weihe River Basin. It has become the key target of local environmental monitoring.

Continued increase in environmental monitoring will promote the improvement of the supply and demand relationship in the entire titanium processing industry. In the past, titanium processing plants with irregular production processes faced inventory cut-off, and the concentration of titanium supply industry is expected to further increase. At the same time, strict three-waste emission standards It will force the downstream petrochemical industry to carry out large-scale equipment upgrades, which will benefit the gradual recovery of industrial titanium demand.

Baoji Dingding Titanium Products Co., Ltd. insists on the price war circle of titanium supply, and targets the target market in high-tech fields such as petroleum, medical, aerospace and other high-tech fields. The company adheres to the quality-oriented business philosophy. All products use A1 grade sponge titanium. As a raw material, we strictly implement national standards in the production process, and we are developing special processing plans for the specific needs of our customers, which not only meets the high quality standards of our customers, but also saves costs for our customers and creates greater profit margins for our customers. , get the support and trust of new and old customers at home and abroad.

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