EXECUTIVE SUMMARY
1.0 INTRODUCTION 1.1 Overview of the titanium metal industry 1.2 Structure of report 1.3 Confidentialityanddisclaimer
2.0 TITANIUM METAL INDUSTRY OVERVIEW 2.1 The titanium metal supply chain 2.2 History of the titanium metal sector 2.3 Titanium metal products – overview 2.4 End-market applications 2.5 Associated markets
3.0 PROPERTIES AND NATURE OF TITANIUM 3.1 Titanium bearing resources 3.2 Mining and processing of titanium feedstocks 3.3 Beneficiatedtitaniumproducts3.4 Titanium feedstock production in 2013 3.5 Properties of titanium 3.6 Comparison with other metals 3.7 Processing, alloys and compounds
4.0 MANUFACTURE OF TITANIUM PRODUCTS 4.1 Titanium tetrachloride production 4.2 Titanium sponge production 4.3 Melting techniques 4.4 Mill processing 4.5 Titanium powder manufacture 4.6 Titanium recycling
5.0 ECONOMICS OF TITANIUM METAL MANUFACTURE
5.1 Methodology 5.2 Overall industry cost structure 5.3 Costs of TiCl4 production 5.4 Costs of titanium sponge production 5.5 Major cost drivers and trends.
6.0 DEMAND FOR TITANIUM 6.1 Demand in end-use sectors 6.2 Commercial aerospace6.3 Industrial sector 6.4 Defence 6.5 Emerging applications
7.0 SUPPLY OF TITANIUM 7.1 Supply developments in 2013 7.2 Regional distribution
8.0 INTERNATIONAL TRADE AND PRICING 8.1 Internationaltradeflows8.2 Duties and tariffs8.3-8.16 US Japan, China, Russia, Kazakhstan, Ukraine,
Germany, France, UK, Italy, The Netherlands, Austria, Spain, South Korea, Taiwan
8.18 Other countries
9.0 EMERGING TITANIUM METAL TECHNOLOGIES9.1 Overview of new extraction technologies 9.2 Cost advantages of new extraction technologies 9.3 Titanium quality in new processes 9.4 Powder consolidation, ally and product development 9.5 Solid freeform fabrication 9.6 Trends in emerging technologies
10.0 INDUSTRY TRENDS AND OUTLOOK 10.1 Current themes 10.2 The global titanium industry 10.3 Commercial aerospace market 10.4 Industrial markets 10.5 Defence markets 10.6 New technologies
APPENDIX 1 - PRODUCER PROFILES
For more information contact TZMI | +61 8 9359 6000 | [email protected] | tzmi.com
TITANIUM METAL ANNUAL REVIEW SAMPLE
NEW EDITION OUT NOW!
TABLE OF CONTENTS
SAMPLE OF 2013 EDITION
OVERVIEW OF TITANIUM AND THE TITANIUM INDUSTRY
The multi billion dollar titanium metal market is examined from the perspective of the entire value chain.
US$110 million titanium
feedstock market
US$2.94 billion titanium sponge market
US$5.41 billion milled
products market
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TiTanium meTal annual Review 2013
andcarbon,andheatedtomorethan900°C.ThisresultsinthecreationofTiCl4andamixtureofcarbondioxideandcarbonmonoxide.
Purification: The TiCl4isdistilledtoremoveanyremainingimpuritiessuchasvanadium,zirconium,silicon,magnesiumandanyresidualiron.
Sponge production:Oncetheimpuritieshavebeenremoved,theTiCl4isreactedwithmagnesiumat1,100°C.Argonispumpedintothecontainertopreventcontaminationwithoxygenornitrogen.Thereactionproducessolidtitaniumandmagnesiumchloride,whichisremovedfromthereactorbyboringandthentreatedtoremoveexcessmagnesiumandmagnesiumchloride.
Theresultantsolidisaporousmetalcalledasponge.
Alloy creation:Thetitaniumspongeiscombinedwiththealloyadditionsinanelectrodearcfurnacetocreatevariousalloys.Typically,aningotisre-meltedmultipletimestoproduceacommercially-acceptablegrade.
MoredetailregardingtheseprocessingstepsisprovidedinChapter 4.
Table 2.2: Common grades of titanium
Astm Grade
united numbering
system
nominal composition,
wt. % descriptioncrystal
structure uses
One half of the oxygen content of
ASTM Grade 1
High Purity Titanium
Alpha Uses include experimentation and research, and applications requiring very low interstitial or other
impurities.
1 R50250 Unalloyed; limit 0.18 O, 0.20 Fe, 0.03 N,
0.10C
Commercially Pure (CP)
Alpha Applications where low iron and interstitial content provide resistance to highly oxidising, mildly reducing
environments; resistant to chlorides; maximum formability.
2 R50400 Unalloyed; limit 0.25 O, 0.30 Fe, 0.03 N,
0.10 C
Commercially Pure (CP)
Alpha Most common CP grade; used in corrosion and oxidation resistance applications requiring higher
strength and lower cost than Grade 1.
3 R50550 Unalloyed; limit 0.35 O, 0.30 Fe, 0.05 N,
0.10 C
Commercially Pure (CP)
Alpha. Applications similar to Grade 2 but requiring higher strength.
4 R50700 Unalloyed; limit 0.40 O, 0.5 Fe, 0.05 N,
0.1 C
Commercially Pure (CP)
Alpha Nearly interchangeable with Grade 3, but slightly higher strength and lower corrosion resistance.
5 R56400; R46401
(ELI)
Ti-6Al-4V Alpha/Beta Most widely used alloy; high strength and good corrosion resistance.
6 R54520; R54521
(ELI)
Ti-5Al-2.5Sn Alpha Excellent weldability with moderate strength.
7 R52400 Unalloyed, with 0.12 to 0.25 Pd
Alpha Comparable to Grade 2 in strength, but better crevice corrosion at low pH and high temperature.
9 R56320 Ti-3Al-2.5V Near Alpha, Alpha-Beta
Excellent cold formability; used for seamless tubing.
11 R52250 Unalloyed, with 0.12 to 0.25 Pd
Alpha Comparable to Grade 1 in strength, but better crevice corrosion at low pH and high temperature.
12 R53400 Ti-0.3Mo-0.8Ni Alpha Stronger than unalloyed grades, less expensive than Grades 7 & 11; crevice corrosion resistance good but
less than Pd grades at low pH.
13 Ti-0.5Ni-0.05Ru; 0.1 O, 0.2 Fe, 0.03 N
Alpha Comparable to Grade 1 in strength but better crevice corrosion at low pH and in hot brine; lower cost than
Pd containing grades.
14 Ti-0.5Ni-0.05Ru; 0.15 O, 0.3 Fe, 0.03 N
Alpha Comparable to Grade 2 in strength but better crevice corrosion at low pH and in hot brine; lower cost than
Pd containing grades.
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Astm Grade
united numbering
system
nominal composition,
wt. % descriptioncrystal
structure uses
15 Ti-0.5Ni-0.05Ru; 0.25 O, 0.3 Fe, 0.05 N
Alpha Comparable to Grade 3 in strength but better crevice corrosion at low pH and in hot brine; lower cost than
Pd containing grades.
16 Ti; 0.04 to 0.08 Pd, 0.25 O, 0.3 Fe
Lean Pd grade Alpha Comparable to Grade 2 in strength but with crevice corrosion benefits similar to Grades 7 and 11.
17 Ti; 0.04 to 0.08 Pd, 0.18 O, 0.2 Fe
Lean Pd grade Alpha Comparable to Grade 1 in strength but with crevice corrosion benefits similar to Grades 7 and 11.
18 Ti-3Al-2.5V; 0.04 to 0.08 Pd
Pd containing version of Grade 9 with improved crevice corrosion resistance.
19 R58640 Ti-3Al-8V-6Cr-4Zr-4Mo
Beta C Beta Cold drawable and rollable; mainly used for springs
20 Ti-3Al-8V-6Cr-4Zr-4Mo; 0.04 – 0.08 Pd
Beta Crevice corrosion resistant version of Grade 19.
21 R58210 Ti-15Mo-3Al-2.7Nb-.25Si
TiMetal® 21S, Beta 21S.
Beta High strength, oxidation and creep resistant; high temperature aerospace applications.
23 R56401 Ti-6Al-4V; extra low interstitials
. Alpha-Beta. High ductility and damage tolerance version of Grade 5
24 Ti-6Al-4V; 0.04 – 0.08 Pd
Alpha-Beta Crevice corrosion resistant version of Grade 5.
25 Ti-6Al-4V; 0.3 – 0.8 Ni, 0.04 – 0.08 Pd
Alpha-Beta General and crevice corrosion resistant version of Grade 5.
26 Unalloyed, with 0.08 – 0.14 Ru; 0.25 O,
0.3 Fe
Alpha Comparable to Grade 2 in strength, but better crevice corrosion at low pH and high temperature. Lower cost
than Grade 7.
27 Unalloyed, with 0.08 – 0.14 Ru; 0.18 O,
0.2 Fe
Alpha Comparable to Grade 1 in strength, but better crevice corrosion at low pH and high temperature. Lower cost
than Grade 11.
28 Ti-3Al-2.5V; 0.08 – 0.14 Ru
Near Alpha, Alpha-Beta
Improved crevice corrosion version of Grade 9 at lower cost than Grade 9.
29 Ti-6Al-4V; extra low interstitials; 0.08 –
0.14 Ru
Alpha-Beta Comparable to Grade 23 in mechanical properties, but improved crevice corrosion resistance.
30 Ti, 0.20 – 0.80 Co; 0.04 – 0.08 Pd; 0.03
N, 0.25 O
Alpha Higher strength version of Grade 16.
31 Ti, 0.20 – 0.80 Co; 0.04 – 0.08 Pd; 0.05
N, 0.35 O
Alpha Higher strength but lower ductility version of Grade 30
32 Ti-5Al-1Sn-1Zr-1V-0.8Mo
Primarily developed for toughness, weldability & seawater stress corrosion cracking resistance in naval
applications, with the popular designation of Ti-5111.
33 Ti, 0.4 Ni, 0.015 Pd, 0.025 Ru, 0.15 Cr;
0.03 N, 0.25 O
Alpha Improved general and crevice corrosion resistance
34 Ti, 0.4 Ni, 0.015 Pd, 0.025 Ru, 0.15 Cr;
0.05 N, 0.35 O
Alpha Improved general and crevice corrosion resistance; higher strength and lower ductility than Grade 33.
35 Ti-4.5Al-2Mo-1.6V-0.5Fe-0.3Si
36 R58450 Ti-45Nb ‘Burn Resistant’ alloy of moderate strength and very low elastic modulus
37 Ti-1.5Al Improved oxidation resistance version of Commercially Pure Ti; auto exhaust applications
38 Ti-4Al-2.5V-1.5Fe Strength and saltwater corrosion resistance comparable to Grade 5; hot and cold workable.
©TZMI 2013 NOT FOR REPROdUCTION
Note: there are no grades 10 and 22
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MANUFACTURE OF TITANIUM PRODUCTS
The supply dynamics of the titanium metal industry is covered with in depth analysis of major producers in relevant markets.
TI-METAL SUPPLY
Heat exchanger
High boiler
column
Heat exchanger
TiCl4 condensor
Dryer
Treated distillate tank
Coke
Rutile
Cyclone
Condensor
Solid waste
Venturi scrubber
Waste recycle collection tank
SOx scrubber
Steam
Scrub liquor recirculation
tank
Caustic recirculation
tank
Sludge
Make-up chlorine
Chlorine recycle + make-up
Dry Cl2 / air
Dry air
Oil heater
Chlorinator
Fuel
Low boiler
column
Heat exchanger
Pure TiCl4 to sponge plant
Steam
Dry sludge solid waste
CO incinerator and waste heat boiler
TiCl4
Clean gas
Stack
Mineral oil
TiCl4
TiCl4cooler
CrudeTiCl4
High boilers
Low boilers
Water
VaporiserCrude tank
Make tank
TiCl4scrubber
Chlorine scrubber
SteamSteam
Pure TiCl4storage tank
Titanium metal product manufacture explained with details of various processes.
MARKETS FOR TITANIUM
Boeing52%
Airbus32%
Others7%
MRO9%
© TZMI 2013 NOT FOR REPRODUCTION
Titanium milled products demand in commercial aerospace in 2012
Close to 90% of manufactured titanium sponge is used in the manufacture of titanium and titanium alloy products for commercial aerospace, industrial applications, defence and emerging applications.
“”
Major end markets for
titanium metal
Details of each segment by region and market share
ECONOMICS OF PRODUCTION
Supply dynamics
Regional analysis by
segment
Cost inputs by
region and segment
Demand drivers
Manufacturing costs
removed for sam
ple editionSUPPLY AND DEMAND
INDUSTRY TRENDS AND OUTLOOK
EMERGING TECHNOLOGIES
Updates on developments
Strategic issues for the
industry
New processes
Key challenges
in the future
New technology
Outlook for titanium metal
markets
APPENDIX
APPENDIX 1 Producer profiles
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TiTanium meTal annual Review 2013
Carpenter Technology Corporation
Ownership PubliclylistedontheNewYorkStockExchange
Address 2MeridianBoulevardWyomissing Pennsylvania 19610-1339US
Tel:Website:
+18002379655;+17242281000 www.cartech.com
Key personnel WilliamAWulfsohn–PresidentandChiefExecutiveOfficer
TimothyRArmstrong–VicePresident–ResearchandProductCommercialization
JamesDDee–VicePresident,GeneralCounselandSecretary
CarolRJackson–VicePresident–Bar,Wire,StripandPlateProducts
RobertCMartens–VicePresidentandChiefInformationOfficer
StephenPeskosky–VicePresident–ForgedBarandBilletBusinessGroup
RussellEReberJr–VicePresident–Quality,Technical&CustomerService
JohnLRice–VicePresident–HumanResources
DavidLStrobel–SeniorVicePresident–GlobalOperations
TonyRThene–SeniorVicePresidentandChiefFinancialOfficer
SunilYWidge–SeniorVicePresident–StrategicBusiness
AndrewTZiolkowski–SeniorVicePresident–Commercial,SpecialityAlloyOperationsandLatrobeOperations
Background CarpenterTechnologyCorporation(Carpenter)wasfoundedin1889byJames Carpenter as the Carpenter Steel Company. It became a public entity in 1937.
In1928,Carpenterannouncedtheworld'sfirstfreemachiningstainlesssteel,Type416whichisstillusedtodayandfollowedwiththefirstchromenickelfreemachiningstainlesssteelin1934,knowntodayasType303.Thenewproductsimprovedtoollifeandproductivityandasaresult,Carpenterbecame synonymous with stainless steels.
Thecompanyisnowaleaderindeveloping,manufacturingandinthedistributionofcast/wroughtandpowdermetalstainlesssteelandspecialityalloys. Its specialtymaterials aremanufactured for the automotive,aerospaceanddefenceindustriesaswellasforenergy,industrialandmedicalmarkets.
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Carpenter Technology Corporation
Operations Carpenter'ssubsidiariesandactivitiesareorganisedundertwobusinessgroups:
–SpecialAlloyOperationsand
–PerformanceEngineeredProducts.
TheSpecialAlloyOperationsproducecast-wroughtstainlesssteels,high-temperaturealloys,high-strengthsteels(nickel-,iron-andcobalt-based),alloysteels,magneticandcontrolledexpansionalloys,toolanddiesteels,andspecial-purposealloysincludingsolidstainlessreinforcingbar.
PerformanceEngineeredProductsinclude:
–DynametIncorporated,thecompany'stitaniumbusinessunit,
–CarpenterPowder,whichmanufacturessphericalgas-atomisedpoweralloys,and
–AmegaWestServices,whichmanufacturesandrentsdownholedrillingtoolsandcomponents.ThecompanywasacquiredinJanuary2011.
Recent developments
In February 2012, Carpenter acquired Latrobe Speciality Metals, amanufactureranddistributorofhigh-performance,remeltedmaterialsforaerospace,defence,energyandotherindustrialapplications.OperationsarelocatedinNorthAmerica,EuropeandAsia.
InNovember2012,CarpenterandSandvikMaterialsTechnologyannouncedthattheywilldissolvetheirjointventuresPowdernetABandCarpenterPowderProductsAB,bothlocatedinSweden.InsteadthetwocompaniesagreedthatthegrowthoftheirrespectivepowdermetalbusinesseswouldbebetterservedbyasupplyagreementbywhichCarpenterwillsupplySandvik.
InApril2013,CarpenterenteredasupplyagreementthatwillprovideRolls-Roycewithadvancedtechnologymaterialsusedinthemanufactureofjetenginescomponents.Thefive-yearagreementrunsuntil2017andisvaluedatapproximatelyUS$75million.
Carpenterreportedfirstquarter2013netincomeofUS$33millionfromnetsalesofUS$582million.Revenuesincreasedintheaerospaceanddefensemarketsby20%toUS$215million,andintheenergymarketby24%toUS$71millionyearonyear.Othermarketssuchastransportation,andindustrialandconsumerapplicationsremainedflat.Revenuesinmedicalapplicationsdeclinedby26%toUS$25millionfromQ12012toQ12013.
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20
30
40
50
60
70
2010 2011 2012 2013f 2014f
'000 tonnes
MRO Others Airbus Boeing
© TZMI 2013 NOT FOR REPRODUCTION
©TZMI 2013
Titanium milled products demand in aerospace: 2010–2014
Industrial applications
Approximatelyhalfofthetotaldemandfortitaniummilledproductsisconsumedbytheindustrialsector.Titaniumisusedextensivelyinawiderangeofindustries,primarilyduetoitscorrosionandchemicalresistanceacrossawiderangeofaggressiveapplications.
Themainindustriesthatusetitaniuminclude:
• chemicalprocessingplants,
• powergenerationforcoolingwaterapplications,
• oilandgasforavarietyofseawaterandstorageapplications,
• marineuses,particularlyforcoolingwatersystemusingseawater,
• desalinationforindustrialanddrinkingwater,and
• thenon-ferrousmetallurgicalsector.
Thelargestindustrialapplicationfortitaniummilledproductsisinthechemicalsub-sector,whichaccountedfor52%,or36,300tonnesofthe69,500tonnestotalindustrialdemandin2012.Powerapplicationswerethesecondlargestsegment,accountingfor11,800tonnes,followedbydesalination(6,400tonnes),ships(4,400tonnes)andmetallurgicalapplications(4,100tonnes).
Thenextmostcommonuseofmilledtitaniumintheindustrialsectorisinheatexchangers,pipes,vesselsandvalvesforthechemical,powerandwatertreatmentsectors.
TZMIforecastglobaldemandfortitaniummilledproductsintheindustrialsectortogrowfrom58,600tonnesin2010to86,600tonnesby2014,a10.3%CAGR.
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Power17%
Oil & Gas3%
Desal9%
Ships6%
Chemical52%
Auto4%
Metallurgy6%
Chlor-Alkali3%
© TZMI 2013 NOT FOR REPRODUCTION
©TZMI 2013
Global demand for industrial applications by end-use sector in 2012
Chinaisthelargestconsumeroftitaniumfortheindustrialsector.In2012,Chinaconsumedalmosthalfofthedemandfortitaniummilledproductsintheindustrialsector.Withinthissector,75%ofChina’sdemandcamefromthechemicalsub-sector.
China’sdemandfortitaniummilledproductsintheindustrialsectorisforecasttogrowby12%CAGRfrom2010to2014,estimatedtoconsume41,100tonnesofproductby2014.
Thefollowingfigurepresentstheforecastforglobaltitaniumdemandintheindustrialsector,bylocation, from 2010 to 2014.
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60
80
100
2010 2011 2012 2013f 2014f
'000 tonnes
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Global industrial sector titanium demand by location: 2010–2014
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