MARKET INSIGHT
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Mining Downstream – Titanium
MARKET INSIGHT
Segment Rational
RATIONAL
Titanium industry is a strategic sector for the Kingdom to grow and further develop, as it serves as an enabler to other sectors (e.g., construction, automotive, renewables, aerospace). In recent years, KSA has taken important steps toward establishing the country’s titanium value chain by setting up a titanium slagger and sponge plant. KSA will become the 5th largest Titanium Sponge producer in the world. Moreover, the Kingdom has opportunity to integrate further into the midstream and downstream segment of the value chain by developing melting and forging capabilities to produce higher value products (e.g., Ingots, Billets, Slabs, Tubes and Profile Extrusions). KSA ambitious to become globally competitive and capturing a strong share of the global Aerospace and Industrial Titanium demand.
Segment Trends and Value Proposition
SEGMENT TRENDS
Decarbonization
Energy Reforms
Digitalization
Stable Titanium sponge prices due to excess supply.
Value Proposition
• Globally, Titanium consumption reached 133 kt in 2020 and is expected to grow at 2.2% annually over the next decade to reach consumption of 165 kt by 2030, mainly driven by infrastructure projects, the power industry, and development of new industries (e.g., automotive, renewables).
• Established capabilities in Titanium Sponge.
• Advantageous energy costs.
Segment Value Chain
Global Demand of Titanium by Industry
Across the titanium value chain segments, Global demand is largely driven by the Aerospace & Defense sectors.
Global Titanium Consumption by Industry
Global demand for titanium metals and alloys is expected to grow at 2.2% CAGR to reach 165 kt in 2030.
The market has two main applications:
• Aerospace & defense which is the largest market segment representing close to half of total demand.
• industrial applications which has lower prices and margins but can be attractive for local consumption.
Global Titanium Sponge Metal Production by Country
• China: By far, the largest producer of titanium sponge metal in the world. Unlike Russia and United States, majority of Chinese titanium is used for industrial applications such as petrochemicals, power generation, etc.
• Russia: VSMPO-AVISMA is the largest titanium sponge manufacturer in the world. Around 60% of Russian mill product output is used in aircraft and aeroengine applications.
• United States: USA currently only has two functioning titanium sponge metal production plants with only one producing aero- space-grade titanium sponge metal.
The data and information provided through Daleel platform are for indicative purpose, the provided data and information can be assessed further and analyzed as part of the feasibility studies. In addition, following are other key sources of information that can be used for business case development.
Key Sources for Data
National Geological Database
Reliable national geological and topographic data repository for the whole kingdom of Saudi Arabia including geological and topographic maps, Mineral Occurrences Documentation System (MODS), geochemistry and geophysics data, borehole data, surface samples data and more.
Invest Saudi
For information about investment opportunities in the kingdom to both foreign and domestic investors, as well as private sector businesses please visit Invest Saudi
Tariff Rates and Data
Through the website of the Zakat, Tax and Customs Authority, you can find the tariff rates and data for all kinds of products.
Import Data
Through the website of General Authority for Statistics, you can find detailed data on Import Statistics for all kind of goods.
Export Data
Through the website of General Authority for Statistics, you can find detailed data on Export Statistics for all kind of goods.
Factories Directory
The Factories Directory is provided by the National Industrial Information Center to enable the user to inquire about factories in the Kingdom by activity, production and location, in addition to other data and information.
Ministry of Economy And Planning
A unified platform to present and analyze the latest economic and social the kingdom and its regions in visually interactive ways that facilitate understanding of the Saudi economic landscape.