At the same time, the global titanium dioxide market is projected at $27.9 billionMOSCOW, February 27.
/tass/. The global titanium market may grow to $6.1 billion by 2026 with an average annual growth rate of 7%, while the global titanium dioxide market is projected to reach $27.9 billion by 2026, with an average annual growth of 5.9%. Such estimates are given in the titanium market review prepared by Roscongress analysts (available to TASS).
As of 2021, the global titanium market was estimated at $4.1 billion, titanium dioxide at $20.9 billion.
Analysts predict that the price of titanium in the second quarter of 2023 could be $8.2-8.5 per 1 kg.
Structure of markets
75% of the total volume of titanium is used in the aerospace industry, 25% fall on shipbuilding, chemical industry, power generation and other segments, follows from the review.
The forecast notes that the catalyst for the growth of the titanium dioxide market will be the rapid development of the Chinese paint and varnish industry after covid. Currently, 1.7 kg of titanium dioxide is consumed per capita in China per year, 2.7 kg in the USA, and 3 kg in Western Europe.
About the Russian market
Titanium ore reserves in Russia exceed 600 million tons, while mainly imported raw materials are used. In 2020, imports from Kazakhstan in monetary terms were estimated at $18.9 million, from Estonia - $10.7 million, China - $9 million, USA - $7.2 million, Ukraine - $6.1 million, India - $3.9 million.
Currently, there is a process of diversification of suppliers of raw materials, among the promising suppliers are Vietnam and Mozambique, the review emphasizes.
At the beginning of 2022, Russia supplied 50% of the world's titanium for the aviation industry. Boeing temporarily stopped purchases, but earlier Russian supplies covered over 30% of the metal demand. According to the review, the Airbus indicator was 65%, the search for an alternative allowed to reduce it by only 15%, and this decrease is not confirmed by reliable sources. According to Embraer, the current figure is about 100%. A similar pattern is observed among engine manufacturers: Rolls Royce - 20%, Safran - 50%.
According to Roscongress analysts, secondary sanctions have an impact on the supply of ore to Russia and its payment. Thus, Western countries that imposed restrictions worsen the conditions in the aviation titanium market, which they need. At the same time, post-kidney-shaped recovery can worsen the deficit.
Prospects for Russian Titanium
Asia, especially China, can become a promising market for Russia. Negotiations are currently underway on joint investments in the Pyzhemskoye deposit in Komi, the world's largest deposit in terms of reserves of titanium and quartz raw materials. China plans to invest in a full production cycle - subsequently, we can talk about purchases not only of ore, but also of finished products. The approximate terms of the project are scheduled for 2026.
