Supply of Titanium to Increase    

Global supply of titanium is forecast to increase by 20% in 2010 to around 150 000 tons following a break in the strong growth cycle from 2005 to 2008 when titanium sponge production increased from 104 000 tons to 176 000 tons, reported by Roskill Information Services. The growth from 2005, which saw large volumes of new and rehabilitated sponge production come on stream, was partly driven by a surge in demand from the aerospace sector, but also by growing demand for titanium in chemical plant in China.  Chinese output of titanium sponge increased fivefold between 2005 and 2008.
    In both 2009 and 2010, titanium sponge capacity was surplus to demand and producers delayed further expansions, idled plants and (in China) closed smaller uneconomic plants.  In 2010, China has been the main engine for growth and production in that country is again growing strongly with several new large-scale sponge plants under construction.
    There are now 18 companies producing titanium sponge, of which nine are in China, compared with just two plants a decade ago. Many companies have announced further expansion plans, although some are now on hold. If all expansions come on stream capacity could reach 400 000 t/a by 2015. The four new projects in China, together with expansions in Japan and Russia, could add 85 000 t/a to the total.
   The main industrial applications for titanium are in chemical/petrochemical plant and in heat exchangers; this sector has exhibited very strong growth over the last five years, almost entirely due to the rapid expansion in construction of chemical and power plants in China.