"Titanium" is hard to find!

As the situation in Ukraine heats up, European and American countries have launched multiple rounds of sanctions against Russia
.
Several manufacturers, including Boeing, Airbus and Rolls-Royce, are looking for new suppliers of key raw material titanium to cover risks to their supply chains, as a precaution against a potential export blockade
.
The light weight and high strength of titanium are not only extremely important for commercial aircraft, but are also used in the production of defense equipment, so they are crucial to national security .
Due to the complex smelting technology and difficult processing, only four countries in the world, the United States , Russia, Japan and China, have complete titanium industrial production technology .
According to the United States Seismological Survey (USGC) , in terms of titanium reserves, Russia ranks third with a 13.
5% share, after China and Japan .
If one considers that the production of titanium sponge in Russia accounts for 22% of the world, its important position in the industrial chain is self-evident .
On a Boeing 787, about 15% of the weight is titanium or titanium alloy Ti-6Al-4V, which means there is more than 19 tons of titanium on each Boeing 787 .
The price of titanium plate is about $20.
85 per kilogram, which means about $400,000 worth of titanium per Boeing 787.
Considering the Boeing 787-9 sells for about $135 million to $145 million, it seems Kind of trivial .
But combined with the complex machining and manufacturing of actual parts, supply chain changes could drive up overall manufacturing costs, which currently cost Boeing about 12.
5% ​​of the selling price per plane .
According to public information, Russia's Avisma (VSMPO-Avisma) is the world's largest producer of titanium sponge, with a production capacity of 34,000 tons per year .
The company is also Boeing's largest supplier of titanium parts .









Over the years, Boeing and Russia have deepened their cooperation in titanium alloys
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Boeing signed its first supply agreement with Avisma in 1997
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In 2006, the introduction of the Boeing 787 increased demand for titanium alloys, and the two sides agreed to form a joint venture
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At the 2021 Dubai Air Show, Boeing signed a memorandum of understanding with Avisma confirming that the company will continue to be the largest supplier to Boeing's commercial aircraft program
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So Russia's involvement in Boeing's supply chain is huge
.
"We now have a very diverse supply of titanium," Boeing Commercial Airplanes chief Stan Deal said at a briefing ahead of this year's Singapore Airshow.
"I can tell you that diversification allows us to It can solve the problem of supply chain interruption related to titanium
.
" Manufacturers look for alternative solutions, scrap becomes a breakthrough exports) to that point, but if (the crisis) intensifies, Russia could retaliate against metal exports, which have approached competitors due to the political situation
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” European aerospace manufacturer Safran gets nearly half of its titanium from Avis Ma buys
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The company said on a recent conference call that it has purchased titanium from German dealers as military tensions have intensified in recent weeks .
But given Avisma's market share and the size of its product base, it's hard to break away from Avisma entirely .
"We have been building up titanium inventories since the beginning of the year, " Safran chief executive Olivier Andries said on Thursday .
"Our inventory also supports several months in terms of engine parts and landing gear, so it will take some time to speed up the search for other sources .
"




20% of the titanium needed for Rolls-Royce aircraft production in the UK comes from Russia, and the company has also been stockpiling and diversifying, Chief Executive Warren East said on a recent earnings call.
its source
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Airbus said in a statement: "Geopolitical risks are incorporated into our titanium procurement policy
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As a result, we are protected in the short/medium term
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These include direct purchases from Russian titanium supplier Avisma, as well as indirect purchases.
Procurement (through our first-tier suppliers)
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" Brokerage Jeffery industry analyst Sheila Kahyaoglu said in a recent report that Avisma supplies nearly a quarter of the world's titanium metal, which is Threats to the aerospace supply chain
.
Japan's Toho Titanium, US-based ATI Metals and RTI International Metals are widely seen as alternatives to the supply chain for titanium products
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The titanium scrap market, ferrotitanium, has revived as manufacturers evaluate sources of titanium
.
The price of Russian-grade ferrotitanium in Rotterdam, the Netherlands, rose nearly 15% from $6.
50-6.
90 per kilogram on February 17 to $6.
75-7.
20 last week
.
A trader said: “As manufacturers face the risk of shortages of titanium metal, they are also looking for suitable scrap sources
.
The supply of high-grade scrap has been tight for several months, and the Russian-Ukrainian conflict has made the situation worse.

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