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1. Basic Overview
(1) Production Capacity
- In 2020, China’s sponge titanium production capacity increased by 12.0% compared to 2019, reaching 177,000 tons.
- The top three sponge titanium producers all expanded capacity in 2020; notably, Luoyang Shuangrui Wanjit Titanium Industry Co., Ltd. added 10,000 tons of new capacity.
- The overall operating rate of the domestic sponge titanium industry exceeded 70%.
- Based on data from 33 titanium ingot producers, China’s titanium ingot capacity increased 11.8% year-on-year to 199,000 tons, mainly due to new melting equipment installed by Xinjiang Xiangsheng and Yunnan Titanium.
(2) Production Volume
- Titanium concentrate output: 6.33 million tons, up 32.7%;
- Panzhihua–Xichang region produced 5.11 million tons, accounting for 80.7% of total domestic production.
- Imported titanium concentrate reached 3.01 million tons, up 15.3%.
- Sponge titanium output: 122,958 tons, up 44.9% from 2019 (84,884 tons), marking the sixth consecutive year of growth.
- Titanium ingot output: 119,937 tons, up 35.2% from 2019 (88,704 tons).
- Titanium processed materials: 97,029 tons, up 28.9% from 2019 (75,265 tons).
(3) Industrial Structure
- Production of titanium & titanium alloy plates increased 47.5%, accounting for 59.2% of total titanium materials; titanium coils represented more than half of this segment.
- Bar production increased 16.9%, accounting for 16.0% of total titanium materials.
- Tube production decreased 6.5%, accounting for 9.8%.
- Forging production increased 7.3%, accounting for 5.8%.
- Titanium wire experienced the fastest growth at 55.5%; other titanium products grew 11.2%.
(4) Market
- Total sponge titanium sales: 122,958 tons; net export: -4,175 tons; domestic consumption: 127,133 tons, up 39.7%.
- Total titanium materials sales: 93,596 tons; net export: 9,107 tons; domestic consumption: 84,489 tons, up 50.7%.
2. Analysis of Economic Performance
(1) Policy Environment
- The Guidelines for New Material Development propose stable supply of advanced basic materials (including titanium alloys) and more than 70% strategic material self-sufficiency.
- Titanium and titanium alloy products were included in the 2019 Industrial Structure Adjustment Catalogue issued by the National Development and Reform Commission (NDRC).
(2) Industry Structural Adjustment
- After nearly 10 years of transformation, China’s sponge titanium industry entered a period of explosive growth in 2020.
- The industry now features major state-owned leaders such as:
- Baoti Group
- Western Superconducting Technologies
- Hunan Xiangtou Jinzhou Titanium
- Western Materials Technology
- Meanwhile, private companies—Xinjiang Xiangrun New Materials, Chongqing Jinshili Aviation Materials, Shaanxi Tiancheng Aviation Materials—achieved breakthroughs in specialized segments.
- Structural upgrading is showing results: demand is shifting from traditional low-end uses (chemical, metallurgy, salt-making) to mid- and high-end sectors like defense, PTA, and marine engineering, with profits gradually concentrating in high-end military-related applications.
(3) Economic Situation
- Despite global COVID-19 challenges, China’s titanium enterprises continued to grow.
- Large and mid-sized companies achieved significant increases in market share and profits through technological innovation and market expansion.
- Production capacity, output, and net profit reached the best levels in the past decade.
- Under the “Belt and Road” and military–civil fusion strategies, high-end demand for titanium grew rapidly, with average growth exceeding 20%.
(4) Market Supply, Demand, and Consumption
- Driven by national support for innovation and domestic economic circulation, titanium material demand rose 50.7% year-on-year.
- Except the medical sector (slightly impacted by COVID-19), all industries saw growth.
- Largest increases in titanium use:
- Chemical (PTA): +1,223 tons
- Aerospace: +4,628 tons
- Marine Engineering: +4,078 tons
- Shipbuilding: +988 tons
- Power: +525 tons
3. Key Issues and Countermeasures
- Raw materials for sponge titanium production rely heavily on imports; with rising demand for aerospace-grade sponge titanium, military sectors require higher stability and quality.
- Mining and smelting processes still need improvement.
- Titanium processed materials require higher quality and consistency.
- Production processes in some enterprises are outdated.
- High technical barriers persist across the industry.