Russian Titanium Demand Rises Sharply in 2023, Driven by Aerospace and Industrial Sectors

May 21, 2024

In 2023, the Russian market saw a significant increase in demand for titanium products, reaching over 18,000 tons, up from the estimated 12,000-13,000 tons annually in previous years. This surge was influenced by the development of the import substitution program and the initiation of a domestic aircraft construction program.

Dmitry Kurochkin, Head of Marketing at VSMPO-AVISMA Corporation, shared these insights at the Titan-2024 conference in Suzdal. The aerospace market accounted for 59% of titanium consumption, with over 40% utilized in the engine building sector and more than 19% in the aircraft, helicopter, and space industries combined.

The industrial sector maintained steady demand for titanium products, comprising over 40% of the total usage. This included 35% for general industrial applications and about 2% for power engineering, with non-ferrous metallurgy and chemical engineering accounting for 3%. Small volumes were also required by research institutes, equipment developers, and service centers.

To meet urgent orders, Russia supplemented its supply with imported titanium rolled products from China. Domestically, titanium sponge is produced by AVISMA, a branch of VSMPO-AVISMA Corporation in Berezniki, and Solikamsk Magnesium Plant (SMZ) in Solikamsk. In 2023, AVISMA produced around 42,000 tons of sponge, while SMZ produced over 1,500 tons. AVISMA accounted for 96% of the total titanium sponge production in Russia and is increasing its output to meet growing demand for titanium rolled products. Additionally, Chinese producers supplied 2,715 tons of titanium sponge to Russia in 2023.

Four main producers of titanium and titanium alloy ingots in Russia include Stupino Metallurgical Company, Chepetsky Mechanical Plant, Vacuum Metallurgy Plant, and VSMPO-AVISMA Corporation. In 2023, more than 90% of Russian titanium ingots were produced by VSMPO-AVISMA, with a production capacity exceeding 70,000 tons of titanium ingots in double remelting. Russian companies produced over 63,000 tons of titanium ingots in 2023, an 18% increase from 2022.

UKTMK produced 16,000 tons of titanium sponge and 6,500 tons of titanium ingots in 2023, with more than 50% of the sponge exported. The majority of the titanium ingots were exported to France, Korea, Belgium, and the United Kingdom.

The primary consumers of titanium in the Russian aerospace sector are integrated aircraft and engine building corporations producing airplanes and engines for various purposes. The aerospace market demand in 2023 was about 11,000 tons. Key programs driving this demand include the SSJ-100 and MS-21 civil aircraft programs, which compete with Western aircraft like the Airbus A220 and Boeing 737.

In the industrial sector, significant consumers of titanium include United Shipbuilding Corporation, Rosatom, and companies in the chemical industry, machine building, and non-ferrous metallurgy. Major projects driving demand include the construction of ice-class vessels for Arctic exploration and new power units by Rosatom, which require substantial amounts of titanium.

While the medical sector's current titanium consumption is low, a government decree on import substitution is expected to increase demand for titanium rolled products.

Overall, the Russian market anticipates moderate growth in titanium demand due to increased production forecasts in the aerospace industry and stable demand from the industrial sector, driven by government programs and accelerated implementation of import substitution initiatives.

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