Reconstruction of the global supply pattern of titanium materials?China may face development opportunities

The situation in Ukraine and Russia is getting more and more severe. Under the constant geopolitical conflicts, rising commodity prices have brought varying degrees of impact on the international economy. In the long run, the reshaping of the traditional global supply chain of aviation titanium materials dominated by Russian suppliers will be inevitable. Such an international situation and the booming aerospace industry have brought new opportunities and challenges to domestic titanium industry companies.

Russia occupies an important position in today's global titanium supply chain. From the perspective of raw materials, the output of titanium sponge in Russia and Ukraine accounts for about 16% of the global total. From the perspective of aviation titanium itself, ~35% of Boeing aviation titanium sources and ~50% of Airbus aviation titanium sources are from Russia. For companies like Embraer and other smaller OEMs, almost 100% of their aviation titanium sources come from Russia. The conflict between Russia and Ukraine caused Europe and the United States to start sanctions against Russia, but to this day, Europe and the United States still have not imposed sanctions on Russia's titanium materials. In the long run, regardless of whether the sanctions are implemented, the reconstruction of the international aviation titanium material supply chain is almost inevitable.