Impact of Russian titanium on global economy-Budrigantrade review

Budrigantrade.com - Metal used in the automotive, aerospace, and marine industries has come to the forefront due to the possibility of supply disruptions in Russia.

After Russia invaded Ukraine, the United States and Europe imposed financial sanctions on Russian banks, individuals, and other entities.

Russian commodity exporters like VSMPO-Avisma, which supplies aircraft manufacturer Boeing with titanium (NYSE: Airbus and BA).

A U.S. industry source stated that VSMPO-AVISMA supplied a third of Boeing's requirements, while Airbus claimed that Russia supplies half of its titanium requirements.

But if Western allies decide to stop "selected" Russian banks from using the SWIFT payments system, it could stop container shipping to and from Russia and disrupt supplies of Russian export goods.

Which location produces titanium?

Titanium sponge is made from titanium minerals, which are turned into metal for use in industry.

According to the U.S. Geological Survey (USGS), China produces the most titanium sponge in the world, producing 210,000 tonnes last year, or 57% of all production.

According to data from the USGS, Russia has nearly 13% of the market, followed by Japan with nearly 17%. Ukraine produced 3,700 tonnes, while Kazakhstan produced 16,000 tonnes.

There are few titanium mineral reserves in Russia.

According to the USGS, "Ukraine was the leading source of imports of titanium mineral concentrates into Russia in 2021." Kazakhstan, Mozambique, and Vietnam were additional major sources."

Ukraine produced 525,000 tonnes of titanium mineral concentrates last year, according to the USGS.

WHO BUYS TITANIUM IMPORTS?

According to consultancy CRU, China imported more than 16,000 tonnes of titanium sponge in the past year, up from 6,000 tonnes in 2020.

The United States was the second largest importer, with approximately 16,000 tonnes in the previous year, down from 19,000 tonnes in 2020.

Japan sends the most titanium sponge to China and the United States, shipping 14,000 and 8,000 tons, respectively, each year.

According to CRU analysts, "a jump in demand for titanium products post-pandemic was led to by the recovery of industries such as construction and aerospace last year."

Prices for titanium sponge have increased by nearly 9 percent since the end of December, reaching approximately $9 per kilogram.

WHAT DO WE DO WITH TITANIUM?

Titanium is utilized in the avionic business to make landing stuff, edges and turbine plates, in the marine business titanium sheet is utilized to make ships and submarines and in the auto area it is utilized in parts for gas powered motors.

Titanium is used in chemical processing to protect against fatigue and cracking, in vaping to improve safety and regulate temperature, and in sports, golf club heads are examples of its applications.

Because it has a density that is comparable to that of human bones, titanium is also used in dental implants and joint replacements.

What makes a name?

The Greek mythological Titans are the source of the name Titanium, and the metal makes up about 0.6% of the earth's mass.

It is a metal that is extremely resistant to corrosion and is hard, strong, and light. Titanium is as strong as steel, but it is 45 percent lighter.