Titanium Is Weak And Sluggish, The Market Highlights in The Second Half Of The Year
Entering the wheat harvest season, the sun should be shining brightly, but the weather is cloudy and rainy. The titanium material market has also entered the off-season, which is rare in recent years, and the chemical equipment projects have been greatly reduced, which has caused a sharp drop in the demand for titanium materials. Feedback to the upstream sponge titanium market is that the company's product inventory has increased and sales have not been smooth. Where is the titanium market situation and new growth points in the second half of the year? Experts from Baoji Titanium Industry Research Institute made the following analysis. From the perspective of the development of the global economy, the economic growth of major economies in the world is not good this year, and there is insufficient support for the growth of titanium materials mainly based on aviation. New marine engineering and petrochemical projects have not appeared in Europe, so the export market for titanium materials Not optimistic. From an international point of view, the growth point of titanium use this year should be in the Middle East, and infrastructure projects in the Middle East, dominated by Saudi Arabia, should become the main growth area for international titanium materials in the future. The domestic economy is affected by many factors, and the demand for titanium materials in the civilian sector has slowed down. First, the next round of engines driving the domestic economy has not yet fully started, and there are no new growth points for industrial development. The second is the impact of export reduction, economic downturn and market uncertainties, resulting in a lack of investor confidence and a significant reduction in investment in new projects.
In the second half of the year, enterprises that are the main growth points of the titanium material market should pay attention to the following aspects: First, the military and aviation fields. In recent years, the amount of titanium used in the domestic military industry has continued to grow rapidly. Both are increasing substantially. The C919 is put into commercial aircraft, and the production volume will increase steadily, which provides a strong guarantee for the stable application of titanium materials. The second is the new electronic industry. The use of titanium in the civilian electronics field represented by Apple mobile phones will inject new vitality into the application of titanium materials in the civilian field, and it also represents a new growth direction in the future. Third, the environmental protection industry has an increasing demand for corrosion-resistant materials, and the demand for environmental protection equipment will increase significantly in the second half of the year, which will also drive new growth of titanium materials in the civilian chemical industry.
In the past few years, the phenomenon of small-scale operation in Baoji area was serious, which can be vividly defined as "scattered, chaotic, and dirty". Through the governance and development in recent years, the large-scale and characteristic development of enterprises has achieved initial results. The next step is to adjust the direction of industrial structure Focus on improving quality. At present, the private titanium enterprises in Baoji area are mainly primary products, and the economic benefits of the products are not high, so they need to adjust as soon as possible, and enter the deep processing field in time according to market demand, so as to increase the added value and technical content of products. The development direction of my country's titanium materials is to change from small-scale multi-enterprises to high-tech, large-scale equipment, and group production and operation mode, and to change the product structure to the field of deep processing. At present, the equipment and technology level of small and micro private titanium enterprises in Baoji area is not ideal, and their ability to resist market shocks is poor. Faced with fierce market competition in the future, enterprises must carry out intensive operations in order to gain a foothold in the market. At the same time, they must also improve the technical level of laborers and realize the transformation to benefit from science and technology.
In short, the off-season of the titanium market in recent months is only an adjustment in development, and does not mean the arrival of titanium winter, and a new round of growth is paving the way for those who are prepared. This week, the inventory of titanium sponge enterprises increased, and the sales transaction price was lowered. The transaction price of grade 0 sponge titanium was around 71,000, and the transaction price of grade 1 sponge titanium fell below 70,000, and the transaction was around 69,000. Correspondingly, the price of bulk titanium materials has also been lowered. The prices of titanium ingots, titanium wide plates, and titanium hot-rolled coils have all fallen to a certain extent. It is expected that the titanium market will be dominated by weakness in the near future.
