China Securities Co., Ltd.: Titanium alloy demand enters explosive period, expanding the application boundaries of 3D printing.

China Securities Co.,Ltd. released a research report stating that titanium metal, with its unique advantages of high strength, low density, corrosion resistance, good biocompatibility, etc., shows irreplaceable applications in the fields of aerospace, medical, consumer electronics, and daily life. In the future, with the growth in applications in areas such as airplanes, rockets, humanoid Siasun Robot&Automation, and 3C consumption, the demand for titanium alloys will enter a period of explosive growth, with the estimated demand growth rate of titanium alloys in the next three years all exceeding 10%. Furthermore, the maturity of 3D printing technology has greatly expanded the application boundaries of titanium alloys. In the field of precision difficult-to-process parts, 3D printing technology and titanium alloy powder materials have unique advantages, and the application of titanium alloy powder will transition from the 0-1 stage to the 1-10 stage. In the titanium industry chain, downstream titanium materials and titanium alloy powder are experiencing the fastest growth. The main points of China Securities Co.,Ltd. are as follows: Titanium Industry Chain: Two Paths of Chemical and Metal The global titanium industry chain can be simply divided into two paths: one is the chemical industry chain: titanium ore titanium dioxide; the other is the non-ferrous metal industry chain: titanium ore sponge titanium titanium alloy. Titanium dioxide accounts for 82% of global titanium concentrate consumption and is used to produce coatings, plastics, etc.; sponge titanium accounts for about 11% and is mainly used in the production of titanium materials and various titanium alloys. Titanium Ore Industry: High output, low grade, high dependence on imports Titanium ore is divided into high-grade ilmenite ore and low-grade titanium iron ore. The main type in China is titanium iron ore, mostly distributed in the western region. The titanium ore industry in China has a high concentration, with Panzhihua Iron and Steel Group, LB Group Co., Ltd., Sichuan Anning Iron And Titanium, and Chongqing Steel Xichang accounting for more than 60% of the national output. In 2024, the global output of titanium concentrate was 9.4 million tons, with China's output at 3.04 million tons and imports at 5.05 million tons, indicating a high dependence on high-grade ore imports. Sponge Titanium Industry: China accounts for 70% of supply, oversupply in low-end capacity In 2024, global sponge titanium production was 320,000 tons, with China's production at 220,000 tons, accounting for 69% globally. China imported 101 tons of sponge titanium and exported 5,993 tons, making it a net exporter. In 2024, China's sponge titanium capacity utilization rate was 85%, while the global rate was 78%. The overall capacity utilization rate is low, with disorderly expansion and oversupply of low-end sponge titanium capacity, leading to poor profits. High-end sponge titanium faces certain technological and certification barriers, retaining reasonable profits. Titanium Processing and Titanium Powder Industry: High-speed demand growth, broad application prospects In recent years, China's titanium consumption for aerospace has entered a fast development lane, increasing from 0.4 million tons in 2011 to 3.22 million tons in 2024, accounting for 21.3% of total consumption. In developed aerospace and military defense industries in North America, the EU, especially the United States, over 50% of titanium product demand comes from the aerospace and defense industries. In the future, consumption of titanium alloys in aerospace, 3C electronics, and other areas will continue to grow rapidly, driving the growth of titanium material consumption. Furthermore, 3D printing technology has made significant progress in recent years. Titanium alloys have high hardness and low thermal conductivity, making them difficult to process. Using traditional CNC methods can lead to high temperatures, rapid tool wear, and low yield, limiting applications. 3D printing technology has expanded titanium's application scenarios, with around 20% of 3D printing materials being titanium alloy powder, ranking as the top 3D printing material. The transformation of titanium processing technology will further drive the demand for titanium alloys. Risk Analysis: Risks of new technologies not meeting expectations: Currently, the titanium alloy powder + 3D printing technology solution has passed the verification phase of 0-1 and entered the expansion phase of 1-10. However, the overall technological difficulty is high, and there is a risk of not meeting expectations in the large-scale application process. Risks of oversupply: While the overall demand trend for titanium alloy materials is upward, the industry faces structural contradictions. The high-end aerospace titanium materials with high demand may face supply shortages, while low-end titanium materials used in traditional fields such as chemicals may face oversupply and price wars. Technological iteration and market competition pressures: Titanium alloys for weight reduction are replacing traditional metals, but in some areas with weight reduction demands, new materials such as carbon fiber may compete with titanium alloys.