Like other segments of the global industry, the titanium industry reacts sharply to the volatility of the global economy and is also affected by various crises. Nevertheless, over the past 20 years, the global production of rolled products has increased more than 4 times. This was stated by Dmitry Kurochkin, Head of Marketing at VSMPO-AVISMA Corporation, speaking at the Titan 2024 conference, which took place this week in Suzdal on the initiative of the Titan Association. The event is attended by more than 200 people, including a representative delegation from China.
In 2023, the global market saw increased demand from the global civil aviation industry, mainly due to increased demand for narrow-body aircraft, as well as sharply increased orders from the global military-industrial complex due to the tense geopolitical situation.
According to the Association of Non-Ferrous Metals of China, the volume of titanium production in 2023 amounted to more than 150 thousand tons. Global production of titanium and titanium alloys in 2023 is estimated at 250 thousand tons. However, due to the presence of large cooperative ties both among global manufacturers and manufacturers of the People's Republic of China, it is necessary to take into account the possible double an account in the production of semi-finished products.
If 20 years ago the volume of double counting in the global production of rolled products of 50-60 thousand tons was two to three thousand tons, today, with production of almost a quarter of a million tons, it can be up to 40 thousand tons or more.
The global aerospace sector accounted for 38% in 2023. The industrial sector took 40%. Significant growth in 2023 was noted by the global military-industrial complex. By the end of 2023, the share of the military-industrial complex was 12%. The medical segment of the global market shows stability of 4%. Emerging markets have slowed down slightly – 6%.
In 2023, Chinese manufacturers exported more than 25 thousand tons of titanium rolled products, which is twice as much as in 2020. Most of the exports of titanium products are flat rolled products, bars and pipes. At the same time, it should be noted that the geography of supplies is quite extensive – more than 100 countries.
High demand for air transportation contributed to the recovery of the passenger transportation market in 2023. Last year, the industry achieved an impressive 36.9% growth compared to the previous year, and the volume of traffic measured in commercial passenger kilometers (RPK) reached 94.1% of the level of 2019, which is a significant increase compared to 2022., when it was 68.7%.
Domestic air travel has set new highs, and by mid-2023, most of the monitored markets have exceeded pre-pandemic levels. By January 2023, China's domestic passenger traffic had fully recovered, which determined the profile of the industry's revival.
In 2023, the total volume of RPK in domestic markets increased by 30.4% compared to 2022 and increased by 3.9% compared to the level of 2019. At the same time, the level of international passenger traffic remained below the level of 2019, while maintaining stable but steady growth rates. Nevertheless, the industry-wide international indicators increased by 41.6% year-on-year and amounted to 88.6% of the pre-Covid level.
In 2023, global aircraft manufacturers delivered 1,353 civilian airliners, which is almost 10% more than in 2022, but 23% lower than the maximum values of the 2018 level..
Read more about the global and Russian titanium markets in the June issue of the Metal Supply and Sales magazine .
