Report on the Development Overview and Future Investment Prospects of China's Titanium Industry

1, Industry Overview: Titanium element symbol Ti, atomic number 22, belongs to refractory rare light metals. It is a silver white metal with characteristics such as low density, high melting point, high specific strength, strong corrosion resistance, good high and low temperature performance, non-magnetic, non-toxic, and good biocompatibility. Among them, the high specific strength performance is particularly outstanding. The strength of high-strength titanium alloy is comparable to that of high-strength steel, but the density is almost half that. In addition, titanium and alloys also have characteristics such as shape memory, superconductivity, and hydrogen storage. At present, titanium and alloys are widely used in fields such as chemical engineering, marine engineering, aerospace, military, metallurgy, medical, sports and leisure. Therefore, titanium is a strategic metal and an indispensable key material in modern high-tech fields, also known as "space metal" or "ocean metal". Titanium material, also known as titanium processing material, is a carrier for the specific application of titanium's excellent properties. It is formed by melting sponge titanium (or sponge titanium plus alloy elements) into titanium ingots, which are then processed into materials through plastic processing methods such as forging, rolling, and extrusion. According to different standards, there are various classification methods for titanium materials, among which it is more common to classify them according to their morphology and whether they have been involved in military methods. According to their morphology, titanium materials include rods, wires, pipes, plates, special-shaped materials, etc; According to whether it involves military industry, titanium materials can be divided into military titanium materials and civilian titanium materials. The upstream of the titanium material industry chain is the exploration and mining of titanium ore and titanium smelting, which mainly uses rutile and ilmenite as raw materials. After beneficiation and enrichment, natural rutile concentrate and ilmenite concentrate are obtained, and then sponge titanium is obtained through extraction processes such as magnesium reduction. Sponge titanium is melted and cast to obtain titanium ingots or added with intermediate alloys to be melted into titanium alloy ingots. The midstream of the industrial chain is the production and manufacturing of titanium materials, which involves deformation treatment, heat treatment, and mechanical processing using forging, rolling, extrusion, and drawing processes to produce titanium products of different specifications (shapes). The downstream of the industrial chain is the application field of titanium materials, mainly including industries such as petrochemicals, aerospace, real estate, automobiles, consumer electronics, and healthcare. 2, According to the Global Mineral Resources Assessment Report released by the United States Geological Survey (USGS) in 2023, as of the end of 2022, the world's proven titanium ore reserves are approximately 749 million tons (calculated as TiO2), of which China's titanium ore reserves are 230 million tons, accounting for 30.7%; The titanium ore reserves in Australia are 150 million tons, accounting for 20.2%; The titanium ore reserves in India are 85 million tons, accounting for 11.3%; The titanium ore reserves in South Africa are 63 million tons, accounting for 8.4%; The titanium ore reserves in Brazil are 43 million tons, accounting for 5.7%. China has the richest reserves of titanium ore in the world, accounting for over one-third; Australia, India, South Africa, and Brazil follow closely behind, accounting for a total of 76.4% of global reserves. From the perspective of mineral taste, the average grade of titanium ore in China is between 5% and 10%, which is relatively low compared to foreign countries. With the deepening of global technological progress and industrial transformation, the demand for titanium and titanium alloys continues to grow, and the market prospects are broad. In this situation, the production of titanium ore in China has been continuously increasing in recent years. Data shows that in 2023, China's titanium mineral reserves will reach 3.247 million tons, accounting for 37% of the global total production. From the distribution of production areas, the domestic titanium ore production is mainly concentrated in Sichuan, Hebei, Xinjiang, and Yunnan. In 2023, the titanium ore production in these four provinces accounted for 82%, 6%, 6%, and 4% of the total national titanium ore production, respectively. 3, Industry Status 1: Domestic Production Situation Titanium plays an irreplaceable role in many fields such as aerospace, marine engineering, new energy, and biomedicine due to its high strength, low density, and corrosion resistance. Titanium alloy has high strength, light weight, and strong heat resistance. It is used to manufacture structural frame components such as aircraft beams and partitions, as well as engine hoods and exhaust systems. It can not only extend the service life of the aircraft, but also reduce its own weight, improve flight performance, and reduce consumption. In the aerospace industry, titanium alloys are widely used to manufacture various pressure vessels, fuel tanks, fasteners, instrument straps, frames, and rocket shells. In the field of daily necessities, titanium is often used to manufacture kitchenware, cups, pots, small appliances, rackets, etc. Its usage in outdoor activities is gradually increasing. Thanks to breakthroughs in production equipment and technological capabilities, as well as the demand from downstream fields such as aerospace, marine engineering, and petrochemicals, China's titanium production has grown rapidly in recent years. Data shows that in 2023, China produced a total of 159100 tons of titanium processed materials, a year-on-year increase of 5.3%; Among them, the output of semi-finished materials is 31500 tons, and the output of finished materials is 127500 tons. Titanium products can be divided into various types according to their form, such as rods, plates, wires, pipes, forgings, castings, etc. From the proportion of production of various titanium products, the domestic production of titanium plates, titanium rods, hot-rolled coils, and cold-rolled coils in 2023 will be 37000 tons, 37000 tons, 25000 tons, and 19000 tons respectively, accounting for 23.2%, 23.2%, 15.7%, and 11.9% of the national titanium production.