Supply: The trend of environmental stringency is unchanged. Titanium tetrachloride and sponge titanium prices are expected to remain high.

Titanium concentrate: 85% of titanium concentrate is used to produce titanium dioxide, while 60% of titanium dioxide is used in the paint market associated with real estate. Influenced by the slowdown of the real estate industry, we expect the price of titanium concentrate to remain stable.

Titanium tetrachloride: In 2018, the trend of tightening environmental protection policy is unchanged, the production of titanium tetrachloride enterprises continues to be limited, and sponge titanium ushered in a new round of expansion storm, the supply-demand pattern continues, and the price is expected to maintain a high level.

Sponge Titanium: On the one hand, the price of raw material magnesium ingot and titanium tetrachloride may run at a high level; on the other hand, the downstream demand is strong; the cost conduction superimposed demand expands, and the price of Sponge Titanium is expected to continue to rise.

Demand: Emerging + Traditional Demand, Titanium Material Enters a New Boom Period

Emerging demand: in the short term, due to the rise of offshore oil and gas exploitation and desalination; the rapid growth of marine engineering, we expect to use 5652 tons of titanium in 2020, and a compound growth rate of 7.13% in three years (2018-2020). In aeronautics, military aircraft are still the main type of aerospace in China in the short term. In the long run, with the acquisition of C919 airworthiness certificate, civil aircraft is expected to surpass military aircraft and become a new bright spot of aviation titanium; in 2025, the amount of titanium for civil aircraft is expected to reach 8380 tons, up 7804 tons from 2020.

Traditional demand: In chemical industry, under the situation of stricter environmental protection, the chemical production capacity is released orderly. It is estimated that by 2020, the titanium used in chemical industry will be 356,000 tons, and the three-year compound growth rate will be 14.23%. In terms of electricity, according to the 13th Five-Year Plan and the Medium and Long-term Development Plan for Nuclear Power (2011-2020), the consumption of titanium in 2020 is estimated to be 8792 tons, with a three-year compound growth rate of 9.52%.

Summary: We estimate that the total consumption of titanium in 2020 will be 82.1 million tons, and the composite growth rate will be 14.19% in three years (2018-2020). Titanium will enter a prosperous period.

Sponge Titanium is in short supply and demand. Prices still have room to rise.

At present, the price of titanium sponge is running at a high level, the profit margin of the producers is large, and the willingness to expand production is strong. At http://www.t0917.com, we estimate that the production of titanium sponge will be 120,000 tons and the demand for titanium material will be 82,000 tons by 2020. According to the consumption of 1.7 tons of sponge titanium per ton of titanium material, the demand for sponge titanium is 139,000 tons, the supply-demand pattern is obvious, and the price of sponge titanium still has room to rise.