Sealand: Global Dual-engine Prosperity Resonates, High-temperature Alloys Embrace New Opportunities.

Sealand released a research report stating that there is a high demand for global aircraft engines and gas turbines, with main engine manufacturers having full orders and speeding up deliveries, driving demand for core components such as chromium salts, high-temperature alloy materials, and parts. As the supply chain continues to shift to China, the domestic high-temperature alloy export chain is facing an important opportunity, maintaining a "recommended" rating for the high-temperature alloy industry. It is recommended to focus on materials, high-temperature alloys, and companies related to aircraft components. Sealand's main points are as follows: High-temperature alloys are key special materials for high-end equipment such as aerospace There are three types of high-temperature alloys: iron-based, nickel-based, and cobalt-based, with nickel-based alloys accounting for the highest proportion (80%). According to the process, they can be divided into deformation, casting, powder, etc. The downstream of the high-temperature alloy industry chain is mainly aerospace engines, gas turbines, and aerospace, which has now expanded to fields such as power, automotive, and nuclear industries, with continuous market demand growth. It is expected that the compound annual growth rate of global aerospace and gas turbine high-temperature alloy demand will be 20% from 2024 to 2028, with demand reaching 450,000 tons in 2026. In terms of production capacity, it is expected that by 2025, the total production capacity of major companies for high-temperature alloys globally will be approximately 367,000 tons (not including small and medium-sized factory production capacity). Companies with clear expansion plans are Carpenter and ATI, with each expected to reach a production capacity of 9,000 tons by the second half of 2027. AIDC drives the explosion of gas turbine demand, leading to rapid growth in high-temperature alloy demand The application of AI large models significantly increases electricity demand, data center energy consumption is rapidly growing, and natural gas power generation has become an important source of electricity due to its cost and reliability advantages. Global gas turbine sales have been rapidly increasing since 2024, with an expected reach of 71GW in 2025. Leading manufacturers such as GE, Mitsubishi, and Siemens have full orders, and expansion is expected to accelerate, with global gas turbine sales expected to exceed 130GW by 2028, with a market space of over $70 billion. High-temperature alloys are core materials for hot-end components such as turbine blades in gas turbines and will significantly benefit from the increase in gas turbine installations and equipment upgrade requirements. Global aircraft engine deliveries are accelerating, and the industry is entering a high-boom cycle According to IATA, as of 2024, the average age of global commercial aircraft has reached 14.8 years, nearing the overhaul cycle. Coupled with the recovery in passenger turnover and record-high passenger load factors, it is driving demand for new aircraft deliveries. The industry predicts that the annual market space for global commercial aircraft engines is $100.1 billion USD, with the annual market space for commercial narrow-body aircraft engines estimated at around $54.2 billion USD and wide-body aircraft engines at around $45.9 billion USD. High-temperature alloys account for 47% of the weight in aircraft engines and are mainly used in hot-end components such as turbine blades and disks, directly benefiting from the increase in engine capacity and update requirements. Commercial spaceflight creates a new demand engine, and high-temperature alloys help aircraft serve in extreme environments Benefiting from various support such as funding, policies, and technology, commercial spaceflight is entering the fast lane of development, with the ground equipment and satellite service market expected to exceed $100 billion USD. In 2025, there were 330 global rocket launches, setting a new historical record. With the future construction of satellite internet, the aerospace industry will experience significant growth. High-temperature alloys are key materials for rockets and aerospace vehicles to operate in extreme environments, primarily used in engine hot-end components, important load-bearing structures and fastening systems, thermal protection systems, etc., deeply benefiting from the demand opportunities of the aerospace era. Risk warning Risks include insufficient expansion of two-machine capacity, fluctuations in downstream demand, price fluctuations of raw materials, risks of technological iteration and product substitution, increasing market competition risks, policy and environmental regulation risks; Pay attention to companies' performance falling short of expectations.