Roskill Information Services: Global Supply of Titanium is Forecast to Increase

LONDON, October 19, 2010 /PRNewswire/ --

- Titanium Metal: Market Outlook to 2015 (5th edition, 2010)

Global supply of titanium is forecast to increase by 20% in 2010 to around 150,000t following a break in the strong growth cycle from 2005 to 2008 when titanium sponge production increased from 104,000t to 176,000t. The growth from 2005, which saw large volumes of new and rehabilitated sponge production come on stream, was partly driven by a surge in demand from the aerospace sector, but also by growing demand for titanium in chemical plant in China. Chinese output of titanium sponge increased fivefold between 2005 and 2008.

In late 2008, the global economic slowdown and delays in the production of high-titanium content aircraft such as the A380 and B787 caused a sharp decline in titanium demand. At the same time, new sponge plants in the USA and Japan, initiated in the earlier boom years, were coming on stream. In both 2009 and 2010, titanium sponge capacity was surplus to demand and producers delayed further expansions, idled plants and (in China) closed smaller uneconomic plants. In 2010, China has been the main engine for growth and production in that country is again growing strongly with several new large-scale sponge plants under construction.

The easing of world supply of titanium sponge has resulted in sponge prices dropping steadily since 2006 and the market is likely to be overhung with surplus sponge capacity until at least 2012 or 2013.

In 2009, production of titanium sponge was confined to six countries, in order of output, China, Japan, Russia, Kazakhstan, USA and Ukraine. Many of the larger sponge producers have downstream operations producing titanium ingot and mill products, but others have played an important role as merchant supplies of sponge. In 2010, UTMK in Kazakhstan, one of the leading merchant suppliers of sponge, started melting ingot on a trial basis and has entered into an agreement with Posco to set up a titanium slab plant in eastern Kazakhstan. This could have a significant impact on the dynamics of global sponge supply.

There are now 18 companies producing titanium sponge, of which nine are in China, compared with just two plants a decade ago. Many companies have announced further expansion plans, although some are now on hold. If all expansions come on stream capacity could reach 400,000tpy by 2015. The four new projects in China, together with expansions in Japan and Russia, could add 85,000tpy to the total.

In 2010, titanium ingot melting capacity is nominally 340,000t, 85% of which is located in Russia, USA, Japan and China. Melting capacity is at least twice that of sponge output, due in part to the practice of double and triple melting, and in part to the use of scrap in the melt feedstock. The USA dominates the production of mill products for the aerospace industry while producers in Japan and China focus on industrial and consumer applications for titanium.

The global market for titanium mill products in 2009 was about 100kt compared with 130kt in 2008. On a global basis, demand for mill products is divided between aerospace (39%), industrial (48%) and consumer (13%) uses, but there are significant regional variations. In the USA the aerospace industry accounts for more than 70% of demand while in China industrial applications dominate. The rapid growth of industrial markets for titanium in China has shifted the balance away from aerospace, but demand for the higher grades of sponge and ingot is still heavily influenced by the cyclical nature of the aerospace industry.

Demand is forecast to grow at 6%py to 2015, resulting in a market for 140,000t of mill products requiring up to 200,000t of sponge. Industrial markets outside the USA and North America will grow at about 9%py and the commercial aerospace market in North America and Europe will grow at around 8%py, albeit from a low base in 2009, provided that the delayed development of the A380, B787 and A350 gathers momentum and the build rates of the B737 rise. The growth in demand from the aerospace sector will come partly from increased aircraft production, but the main driver is the increased buy-in weight of titanium per aircraft. The greater use of composites, more compatible with titanium than aluminium, has resulted in significant increases in the use of titanium in landing gear, ducting, wing carry through structures and weight-critical forgings.

The main industrial applications for titanium are in chemical/petrochemical plant and in heat exchangers; this sector has exhibited very strong growth over the last five years, almost entirely due to the rapid expansion in construction of chemical and power plants in China.

The market for sponge, unwrought metal and mill products is characterised by long-term supply agreements between major producers and consumers, without the involvement of traders. However, the shortage of sponge in 2006 led to more activity on the spot market and prices for sponge, which had historically hovered around US$7/kg, rose to US$30 by the end of that year. As more sponge capacity came on stream the market started to weaken and by 2010 sponge prices were generally below US$10/kg. Prices of ingot and mill products were also well below the peaks reached in 2006/7. Scrap prices, on the other hand, strengthened in 2010 as supplies had dwindled in 2009 as manufacturing declined. Prices for sponge are not likely to move significantly above US10/kg until 2014 when the surplus capacity should be absorbed.

Titanium Metal: Market Outlook to 2015 (5th edition, 2010) is available at GBP4200 / US$7000 / EUR5600 from Roskill Information Services Ltd, 27a Leopold Road, London SW19 7BB, England. Tel: +44-20-8944-0066. Fax +44-20-8947-9568 Email: info@roskill.co.uk Web: http://www.roskill.com/titanium-metal

Note to editors

The report contains 337 pages, 134 tables and 84 figures. It provides a detailed review of the industry, with subsections on the activities of the leading producing companies. It also analyses consumption, trade and prices.

For further information or a review copy of this report, please contact Mark Seddon (mark@roskill.co.uk). To receive press releases via email, please contact Prakash Ramachandran (prakash@roskill.co.uk).

    Table of Contents
                      Page

    1         Summary                                                       1

    2         History, occurrence, and resources of titanium                7
    2.1       History of the discovery of titanium metal                    7
    2.2       Properties of titanium metal                                  7
    2.2.1     Crystallography of titanium metal                             9
    2.3       Mineralogy and occurrence of titanium                        10
    2.3.1     Mineralogy of titanium                                       10
    2.4       Occurrence                                                   11

    3         Mining, processing and refining of titanium metal            12
    3.1       Mining and concentration                                     12
    3.2       Upgrading of ilmenite to titanium mineral and metal
              feedstocks                                                   13
    3.2.1     Production of titanium slag                                  14
    3.2.2     Production of synthetic rutile                               14
    3.2.2.1   The Becher process                                           14
    3.2.2.2   The Benilite process                                         16
    3.2.3     Composition of synthetic rutile                              16
    3.3       Natural rutile                                               17
    3.4       Processing of rutile and titanium slag to titanium metal     17
    3.4.1     Production of titanium sponge                                19
    3.4.1.1   Grades of titanium sponge                                    19
    3.4.1.2   The Kroll process                                            20
    3.4.1.3   The Hunter process                                           21
    3.4.1.4   Molten salt chlorination                                     21
    3.4.2     New technologies for recovery of titanium metal              22
    3.4.2.1   Armstrong/ITP                                                22
    3.4.2.2   FFC Cambridge Process - Metalysis Ltd                        24
    3.4.2.3   CSIRO - the TiRO(TM) Process                                 24
    3.4.2.4   Japan Titanium Society - EMR/MSE Process                     25
    3.4.2.5   Peruke (Pty) Ltd                                             25
    3.4.2.6   Materials & Electrochemical Research (MER)                   25
    3.4.2.7   Norsk Titanium                                               25
    3.5       Processing of titanium sponge                                26
    3.5.1     The double and triple vacuum arc remelting processes         26
    3.5.2     Cold hearth melting processes                                27
    3.5.3     Induction Skull Melting                                      29
    3.5.4     Grades of commercially pure (CP) titanium metal              30
    3.5.5     Melting techniques used by principal companies               31
    3.6       Manufacture of titanium mill products and forgings           32
    3.7       Titanium powder metallurgy (PM)                              34
    3.7.1     Powder manufacturing processes                               35
    3.7.1.1   Hydride-dehydride process                                    36
    3.7.1.2   Plasma Rotating Electrode process                            36
    3.7.1.3   Gas Atomisation process                                      36
    3.7.1.4   Research into new processes                                  36
    3.8       Production of ferrotitanium                                  37
    3.9       Generation of titanium scrap                                 38
    3.1       Titanium metal production costs                              39
    3.10.1    Titanium sponge production costs                             40

    4         World supply of titanium minerals and metal                  42
    4.1       Supply of titanium minerals                                  42
    4.1.1     Companies producing titanium slag, rutile and synthetic
              rutile                                                       46
    4.2       Supply of titanium sponge                                    47
    4.2.1     Companies producing titanium sponge                          50
    4.3       Supply of titanium scrap                                     52
    4.4       Supply of titanium melted products                           54
    4.4.1     Companies producing melted titanium products                 55
    4.5       Supply of titanium mill products                             57
    4.6       Supply of titanium powder                                    59
    4.7       Supply of ferrotitanium                                      59

    5         Future supply of titanium products                           61
    5.1       Future supply of titanium sponge and forecast to 2015        61
    5.2       Future supply of titanium scrap                              64
    5.3       Future expansion of titanium melting capacity                64
    5.4       Future supply of titanium mill products                      64

    6         Notes on the production and use of titanium by country       65
    6.1       Armenia                                                      65
    6.2       Australia                                                    65
    6.2.1     Producers of rutile and synthetic rutile in Australia        66
    6.2.1.1   Iluka Resources Ltd                                          66
    6.2.1.2   Consolidated Rutile                                          67
    6.2.1.3   Tiwest Joint Venture                                         67
    6.2.1.4   Bemax Resources                                              67
    6.3       Austria                                                      67
    6.4       Belgium                                                      69
    6.5       Brazil                                                       70
    6.6       Canada                                                       70
    6.7       China                                                        72
    6.7.1     Production of titanium minerals                              73
    6.7.2     Producers of titanium sponge                                 74
    6.7.2.1   Zunyi Titanium Stock Co                                      76
    6.7.2.2   BaoTi Huashen Titanium Industry                              76
    6.7.2.3   Chaoyang Hundred Sheng Company                               77
    6.7.2.4   Tangshan Tianhe Titanium Industry                            77
    6.7.2.5   Chaoyang Jinda                                               77
    6.7.2.6   Fushun Titanium                                              77
    6.7.2.7   Shuangrui Wanji Titanium Company                             77
    6.7.2.8   Jinzhou Huatai Metals                                        78
    6.7.2.9   Zhongxin (CITIC) Jinzhou Ferroalloys                         78
    6.7.3     New titanium sponge projects                                 78
    6.7.3.1   Aricom/Chinalco                                              78
    6.7.3.2   Pangang Group                                                78
    6.7.3.3   Jinchuan Group                                               79
    6.7.3.4   Yunnan Metallurgical Group (CYMG)                            79
    6.7.4     Producers of titanium ingot and mill products                79
    6.7.4.2   Shanghai Baogang Group                                       82
    6.7.4.3   Tianjin Yinze Metal Sheet Plant                              82
    6.7.4.4   Northwest Institute for Nonferrous Metal Research            82
    6.7.4.5   Beijing Zhongbei Titanium                                    83
    6.7.4.6   Cixi Wuhuan Titanium                                         83
    6.7.4.7   Baimtec Material                                             84
    6.7.4.8   Baoshan Iron and Steel Holding Special Steel Division        84
    6.7.4.9   Baoji Lixing Titanium                                        84
    6.7.4.10  Baoji First Titanium                                         84
    6.7.4.11  Valinox                                                      85
    6.7.4.12  Donggang Dongfang Hi-Tech Company                            85
    6.7.4.13  Pangang Group (Pansteel)                                     85
    6.7.4.14  Other companies                                              85
    6.7.5     Producers of ferrotitanium                                   86
    6.8       Czech Republic                                               87
    6.9       Finland                                                      88
    6.1       France                                                       88
    6.10.1    Timet Savoie                                                 89
    6.10.2    Valtimet SA                                                  90
    6.10.3    Spécitubes                                                   90
    6.10.4    Aubert&Duval                                                 90
    6.10.5    Cefival                                                      90
    6.10.6    Other companies                                              91
    6.11      Germany                                                      91
    6.11.1    ThyssenKrupp Titanium GmbH                                   92
    6.11.2    Other companies                                              93
    6.12      India                                                        95
    6.12.1    Titanium sponge projects                                     95
    6.12.2    Production of titanium ingot and mill products               96
    6.12.2.1  Mishra Dhatu Nigam (Midhani)                                 96
    6.12.2.2  Other companies                                              96
    6.12.3    Producers of ferrotitanium                                   97
    6.13      Italy                                                        97
    6.13.1    Tifast                                                       98
    6.13.2    TitaniumKrupp Titanium                                       98
    6.13.3    Loterios SpA                                                 99
    6.14      Japan                                                        99
    6.14.1    Titanium sponge and ingot                                   101
    6.14.1.1  Osaka Titanium Technologies                                 101
    6.14.1.2  Toho Titanium Co Ltd                                        102
    6.14.1.3  Kobe Steel                                                  103
    6.14.1.4  Other companies                                             104
    6.15      Kazakhstan                                                  104
    6.15.1    Ust-Kamenogorsk Titanium and Magnesium Plant (UKTMP)        105
    6.16      Kenya                                                       106
    6.17      South Korea                                                 107
    6.18      The Netherlands                                             107
    6.19      Norway                                                      108
    6.2       Russia                                                      109
    6.20.1    Titanium minerals                                           110
    6.20.2    Producers of titanium                                       111
    6.20.2.1  VSMPO Avisma                                                111
    6.20.2.2  Solikamsk Magnesium                                         114
    6.20.2.3  Other ingot and mill product producers                      115
    6.20.3    Producers of ferrotitanium                                  116
    6.20.3.1  VSMPO Avisma                                                116
    6.20.3.2  Kluchevsky Ferro-Alloy Plant                                117
    6.21      South Africa                                                117
    6.22      Spain                                                       117
    6.23      Sweden                                                      118
    6.24      Taiwan                                                      119
    6.25      Ukraine                                                     120
    6.25.1    Titanium concentrates                                       121
    6.25.2    Titanium sponge                                             122
    6.25.2.1  Zaporozhye Titanium & Magnesium Combine (ZTMK)              122
    6.25.2.2  Titanium ingot and mill products                            123
    6.26      UK                                                          123
    6.26.1    Producers and processors of titanium metal                  125
    6.26.1.1  Timet UK                                                    125
    6.26.1.2  ATI Titanium International                                  126
    6.26.1.3  Other titanium processors and fabricators                   127
    6.26.2    Producers of ferrotitanium                                  128
    6.26.2.1  London & Scandinavian Metallurgical Co Ltd                  128
    6.26.2.2  Metals & Alloys Titanium Products                           128
    6.26.2.3  Other companies                                             128
    6.27      USA                                                         129
    6.27.1    Titanium minerals                                           129
    6.27.2    Titanium sponge                                             130
    6.27.3    Titanium scrap                                              131
    6.27.4    Unwrought titanium products                                 132
    6.27.5    Titanium mill products and articles                         133
    6.27.6    Producers of titanium metal and products                    135
    6.27.6.1  Titanium Metals Corporation (Timet)                         136
    6.27.6.2  Allegheny Technologies Inc                                  138
    6.27.6.3  RTI International Metals Inc                                140
    6.27.6.4  Alcoa Howmet                                                141
    6.27.6.5  Honeywell Electronic Materials                              142
    6.27.6.6  Perryman Co                                                 143
    6.27.7    Fabricators of titanium                                     143
    6.27.7.1  Dynamet Incorporated                                        143
    6.27.7.2  Ladish Co Inc                                               143
    6.27.7.3  Precision Castparts Corp                                    144
    6.27.7.4  Titanium Industries                                         145
    6.27.7.5  Other titanium producers and fabricators                    145
    6.27.8    Scrap processors and suppliers                              148
    6.27.9    Ferrotitanium                                               149

    7         Consumption of titanium metal                               150
    7.1       Consumption of titanium mill products                       150
    7.2       Consumption of titanium metal by use                        152
    7.2.1     USA                                                         154
    7.2.2     EU                                                          155
    7.2.3     Japan                                                       156
    7.2.4     China                                                       158
    7.2.5     FSU                                                         159
    7.2.6     Other                                                       159

    8         Forms and fabrication of titanium metal                     160
    8.1       Commercially pure (CP) titanium                             162
    8.2       Titanium alloys                                             163
    8.2.1     Alpha-beta alloys                                           167
    8.2.2     Alpha class alloys                                          169
    8.2.3     Beta class alloys                                           169
    8.2.4     Shape memory alloys                                         171
    8.2.5     Specialised titanium alloys and composites                  173
    8.2.5.1   Titanium aluminides                                         173
    8.2.5.2   Niobium-titanium alloys                                     174
    8.2.5.3   Titanium nitride, carbide, and carbonitride                 175
    8.2.5.4   Reinforced alloys and intermetallics - metal matrix
              composites                                                  176
    8.2.5.5   Titanium in honeycomb structures                            176
    8.2.5.6   Porous titanium                                             177
    8.3       Fabrication of titanium metal and alloy products            177
    8.3.1     Casting                                                     178
    8.3.2     Hot isostatic pressing                                      179
    8.3.3     Superplastic forming                                        179
    8.3.4     Diffusion bonding                                           181
    8.3.5     Powder metallurgy                                           181
    8.3.6     Flowforming                                                 184
    8.3.7     Selective laser sintering/hot isostatic pressing            185
    8.3.8     Rapid solidification processing                             185
    8.3.9     Dispersoid strengthening                                    186
    8.3.10    Brazing                                                     186
    8.3.11    Surface hardening                                           186
    8.3.12    Heated roll rolling                                         186

    9         Uses of titanium metal                                      188
    9.1       Use of titanium metal in aerospace                          188
    9.1.1     Trends in titanium consumption in aircraft                  190
    9.1.2     Aero engines                                                194
    9.1.3     Airframes                                                   195
    9.1.3.1   Military airframes                                          198
    9.1.4     Alternative materials                                       198
    9.1.5     Structure of the aerospace industry                         199
    9.1.5.1   Airframe companies                                          200
    9.1.5.2   Aero engine companies                                       202
    9.1.5.3   Helicopter companies                                        204
    9.1.6     Historic trends in the commercial aerospace industry        204
    9.1.6.1   Large passenger and regional jet aircraft                   205
    9.1.6.2   Aero Engines                                                209
    9.1.6.3   Cargo airliners                                             210
    9.1.6.4   General aviation                                            210
    9.1.7     Military procurement plans                                  211
    9.1.7.1   Fighters and transporters                                   211
    9.1.8     Titanium in space flight                                    212
    9.2       Use of titanium metal in industrial applications            213
    9.2.1     Use of titanium metal in heat exchangers                    214
    9.2.2     Use of titanium metal in chemical and petrochemical
              process equipment                                           216
    9.2.2.1   Chemical and food processing                                219
    9.2.2.2   Cathodic protection and electrochemical applications        220
    9.2.2.3   Chloralkali processing                                      221
    9.2.3     Use of titanium metal in power generation and transmission  222
    9.2.3.1   Condenser tubes                                             223
    9.2.3.2   Flue gas desulphurisation (FGD)                             223
    9.2.3.3   Steam turbine blades                                        224
    9.2.3.4   Nuclear power stations                                      225
    9.2.3.5   Nuclear fuel and waste containers                           226
    9.2.3.6   Other power generation uses                                 227
    9.2.4     Use of titanium metal in the oil and gas industry           227
    9.2.5     Use of titanium metal in metal recovery and
              electrorefining                                             230
    9.2.6     Use of titanium metal in geothermal energy                  231
    9.2.7     Use of titanium metal in non-military marine applications   232
    9.2.8     Use of titanium metal in water desalination                 233
    9.2.9     Use of titanium metal in building and construction          235
    9.2.10    Use of titanium metal in tool and machinery coatings        237
    9.2.11    Use of titanium metal in automotive applications            238
    9.2.11.1  Exhaust systems                                             240
    9.2.11.2  Suspension springs                                          241
    9.2.11.3  Valves and valve springs                                    242
    9.2.11.4  Brake pads                                                  242
    9.2.11.5  Other parts                                                 242
    9.2.11.6  Concept cars                                                243
    9.2.11.7  Racing and high speed cars                                  243
    9.2.12    Use of titanium metal in other industrial uses              244
    9.3       Use of titanium metal in non-aerospace military
              applications                                                244
    9.3.1     Armour                                                      244
    9.3.2     Field guns and small arms                                   246
    9.3.3     Naval applications                                          246
    9.4       Use of titanium metal in consumer applications              247
    9.4.1     Golf clubs                                                  248
    9.4.2     Bicycles                                                    249
    9.4.3     Other sports equipment                                      249
    9.4.4     Non-sport consumer applications                             250
    9.4.4.1   Spectacles, sunglasses and jewellery                        250
    9.4.4.2   Watches, cameras, binoculars and accessories                251
    9.4.4.3   Art and art materials                                       251
    9.4.4.4   Kitchenware                                                 252
    9.4.4.5   Other uses                                                  252
    9.5       Use of titanium metal in medicine                           253
    9.5.1     Hip and knee prostheses                                     254
    9.5.2     Spinal implants and cages                                   254
    9.5.3     Heart components                                            255
    9.5.4     Wheelchairs                                                 255
    9.5.5     Dentistry                                                   256
    9.5.6     Other uses                                                  257
    9.6       Use of titanium in high technology applications             257
    9.6.1     Sputtering targets                                          257
    9.6.2     Superconductivity                                           258
    9.6.2.1   Nuclear magnetic resonance                                  259
    9.6.2.2   Particle accelerators                                       259
    9.6.2.3   Electricity storage and transmission                        259
    9.6.2.4   Magnetic levitation and propulsion systems                  260
    9.6.2.5   Industrial cyclotrons and synchrotrons                      260
    9.6.2.6   High-intensity magnetic separators                          260
    9.6.2.7   Motors and generators                                       260
    9.6.3     Computers                                                   260
    9.6.4     Optical systems                                             261
    9.7       Other end uses for titanium-based alloys and compounds      261
    9.8       Use of titanium in steels, superalloys and other minor
              alloys                                                      262
    9.8.1     Carbon steel                                                264
    9.8.1.1   Markets for carbon steels                                   265
    9.8.2     Stainless steels                                            267
    9.8.2.1   Production and consumption of stainless steel               268
    9.8.3     Tool, die and valve steel                                   270
    9.8.4     Superalloys                                                 273
    9.8.5     Alloys other than steel and superalloys                     275

    10        Analysis of international trade data for titanium metal     277
    10.1      Trade in unwrought titanium                                 278
    10.1.1    Exports                                                     278
    10.1.2    Imports                                                     282
    10.2      Trade in titanium mill products and articles                284
    10.2.1    Exports                                                     284
    10.2.2    Imports                                                     288
    10.3      Trade in titanium waste and scrap                           291
    10.3.1    Exports                                                     291
    10.3.2    Imports                                                     294
    10.4      Trade in ferrotitanium                                      297
    10.4.1    Exports                                                     297
    10.4.2    Imports                                                     300

    11        Titanium marketing and prices                               303
    11.1      Titanium sponge prices                                      303
    11.1.1    Historical perspective 1941 to 2010                         303
    11.1.2    European and US free market price quotations 1989 to 2007   306
    11.1.3    Value of US sponge imports 2004 to 2010                     307
    11.1.4    Titanium sponge prices in China 2006 to 2010                309
    11.2      Titanium scrap prices                                       310
    11.3      Titanium melted and mill products prices                    313
    11.3.1    Melted product                                              313
    11.3.2    Mill products                                               315
    11.4      Ferrotitanium prices                                        318
    11.5      Outlook for titanium prices to 2015                         323

    12        Outlook for titanium metal demand by application to 2015    326
    12.1      Outlook for titanium demand in aerospace                    329
    12.2      Outlook for titanium demand in industrial applications      333
    12.3      Outlook for titanium demand in non-aerospace military
              applications                                                334
    12.4      Outlook for titanium demand in consumer applications        334
    12.5      Outlook for titanium demand in medical applications         335
    12.6      Outlook for titanium demand in steels and superalloys       335

    13        Supply and demand of titanium sponge to 2015                337

SOURCE Roskill Information Services



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