The first half of 2019 May be the hottest market in the titanium industry in the past three years. The price of titanium sponge has been soaring all the way, and at one time, the supply of titanium plate and tube was in short supply. The market demand for titanium plate and tube was relatively active, and there were many inquiries and orders. In the first half of 2019, large state-owned enterprises with core competitiveness and key equipment have relatively full orders in hand, with sufficient resources of titanium sponge and strong ability to continuously receive orders. Private enterprises with advantages in price and delivery time also have sufficient orders, but limited by the supply of titanium sponge and the price of downstream orders, their ability to continuously receive orders needs to be assessed. The main reasons for this phenomenon can be summarized as follows:
In the first half of the year, China's large petrochemical industry has started to purchase titanium materials
Take PTA industry as an example, China is the world's largest PTA producer and consumer, and China's PTA capacity accounts for about 56% of the global PTA capacity. The period from 2011 to 2013 is the peak of the expansion of PTA industry in China. The capacity of 2013 to 2017 is seriously excessive, coupled with the shortage of raw material supply, the PTA industry in China suffers from losses and almost no new capacity. With the structural adjustment of the industry, the PTA industry gradually recovers. From 2018 to 2020, the domestic PTA industry will be an expansion period, and the demand for titanium materials will also increase significantly. It is understood that in 2019, lianyungang ShengHong refinery project, phase ii of new fengming, fujian hundred macro, from petrochemical, hengli petrochemical phase ii, phase ii of zhejiang petrochemical gradually stepped into the stage of purchasing, of titanium processing materials especially titanium plate with pipe demand explosive growth in the short term, it will also promote the ascension of the titanium sponge price and accelerated the trend of titanium sponge supply constraints. In China, 725 research institute/shuangrui group, baoti group, northwest nonferrous research institute and affiliated enterprises are mainly capable of undertaking similar large projects. These enterprises have relatively sufficient supply of raw materials and relatively mature technology, and can realize the whole process control from raw materials to the final equipment, with obvious advantages.
Electric power, metallurgical areas of titanium demand growth is obvious
According to statistics of titanium, zirconium and hafnium branch of China nonferrous metals association, titanium materials used in electric power and metallurgy field are relatively stable, accounting for about 13% of the total demand of titanium processed materials in China every year. In recent years, due to the further improvement of national environmental protection requirements and the upgrading and adjustment of industrial structure, titanium has been widely used in the electric power and metallurgy fields. Taking flue gas dewhitening as an example, with the increasingly stringent environmental protection standards in China, many provinces and cities have put forward strict control requirements for power plant chimney dewhitening. In 2018, zhejiang standards for the emission of air pollutants from coal-fired power plants (submitted for approval). The paper sets specific requirements for the limits of air pollutants and emission performance of coal-fired power plants, and addendum technical requirements for gypsum rain and colored plume testing. In the same period, hebei implemented the treatment of gypsum rain and colored plume, requiring that more than 60% of the treatment tasks qualified for transformation should be completed in 2019. Several regions, including guangdong, jiangxi, jiangsu and tangshan, put forward plans to debai in 2018. Fluorine tube has been purchased as heat exchange tube in foreign countries. Due to the immature use and low thermal conductivity of fluorine tube in China, titanium heat exchange tube is preferred to be used as heat exchange tube in China. A power plant in tianjin took the lead in using titanium tube as heat exchange tube, which was the first shot of titanium tube in the whitening industry. In 2019~2022, titanium tube will be the main force in the field of whitening, and the demand for titanium tube will increase greatly. In the field of hydrometallurgy, domestic new technologies are springing up like mushrooms, and titanium as an alternative product will explode in the next few years. The civil enterprises in these two industries have obvious advantages. The demand of a single project is generally about 50 tons, which is relatively loose to the board width requirements, but sensitive to the price and delivery date, and private enterprises have obvious advantages.
The water treatment industry is increasingly demanding titanium
According to the general classification of titanium industry, there is no separate classification of water treatment industry. The general statistics are in the fields of chemical industry, electric power and metallurgy, such as high-salt wastewater treatment in coal chemical industry, power plant wastewater treatment and so on. What is described here is mainly domestic sewage treatment. The author believes that with the continuous improvement of people's living standards in recent years and people's pursuit of a better life, the state will focus on the treatment of urban domestic sewage, sewage from science and technology parks, municipal garbage leachate and waste water from waste incineration for power generation in the next few years. Take the treatment of landfill leachate as an example. After garbage decomposes for days or even years, along with the infiltration of precipitation, surface water and groundwater, brown and black landfill leachate will be produced, commonly known as "garbage soup". In 2008, China's ministry of environmental protection issued the revised "domestic waste landfill pollution control standards" in landfill sites, China became the world's most stringent landfill leachate discharge standards. In the public notification of the central environmental protection supervision team from 2016 to 2017, 8 of the 16 provinces reported improper treatment of landfill leachate. This is only the official data. In fact, most of the provinces and cities in China are surrounded by garbage. Due to the complex composition and extremely corrosive nature of landfill leachate, the corrosion resistance of equipment is highly required, and titanium can well solve this problem. Many landfill leachate treatment manufacturers have the demand for full titanium of equipment, which also drives the demand for titanium. There are many domestic projects in the first half of 2019, so the future demand space is large.
Titanium is highly active in new industries and markets
After the low period from 2014 to 2018, titanium industry personnel have actively promoted the application of titanium in all walks of life, and titanium has been accepted by more and more industries, from scientific research and design institutes to ordinary people's homes, all have titanium shadow. At present, there is little demand in these industries and markets. Large state-owned enterprises do not pay much attention to test products of military products or test products of civilian products, which provides a good opportunity for small and medium-sized private enterprises to develop. Small and medium-sized private enterprises have a high degree of enthusiasm for the emerging titanium industry, good service, and more advantages to serve customers.
After several years of structural adjustment and survival of the fittest, the current situation is relatively clear. State-owned enterprises with core technology strength and key equipment are becoming more and more competitive in the future. Private enterprises start from service and gradually occupy subdivided areas to give full play to their advantages. The days when many private enterprises in baoji could do anything are gone forever. State-owned enterprises have also begun to fully evaluate their own competitiveness. Instead of picking up all the vegetables in the basket, they have started to do something or do nothing to pursue high-quality development. 2019 is a crucial year for the transformation and upgrading of the titanium industry. The year of 2019 begins with the bright gold, and the true qualities of a hero can only be shown in the turbulent times. We hope that every enterprise can stand on a new starting point and achieve leap-forward development.