Summary

The titanium industry responded to rapidly increasing demand from aircraft makers and industrial plant manufacturers in 2005 and 2006, by creating new sponge capacity, particularly in China, but also in all the main producing countries.  Production of sponge increased from 74kt in 2003 to 176kt in 2008.  In late 2008, the global economic slowdown and delays in production of the A380 and B787 jet airliners caused a sharp fall in titanium demand just as the new titanium sponge projects were nearing completion.  Consequently, in 2009 and 2010, titanium sponge capacity was surplus to demand, and producers idled or (in China) closed sponge plants, and global output fell to 120kt.  By mid 2010, it was clear that demand for titanium sponge in China was growing strongly and annual global output was forecast to recover to 150kt.  Nevertheless surplus sponge capacity is likely to overhang the market until 2012 and prices will remain relatively subdued through the next two years.

Titanium mill products and components are made principally in the USA, Russia, Japan and China and global demand in 2009 was estimated to be 100kt.  Aerospace applications account for over 50% of demand for mill products in the USA and Europe but in China, Japan and other Asian markets industrial applications, particularly in chemical plant, are far more important.  Demand is forecast to grow by 6%py to 2015 resulting in a market for mill products of140kt, requiring up to 200kt titanium sponge.

Source: http://www.roskill.com

TABLE 3

⁴Withheld to avoid disclosing company proprietary data; included in -Total.-

Source: United States Geological Survey Mineral Resources Program