China's leading high-end titanium alloy materials, high-performance superalloy materials, and superconducting materials technology companies, XAXB Advanced Materials Technology Group recently released its Q3 financial report:
XAXB orders have been scheduled until July next year, and the price of sponge titanium drops directly to increase profits
XAXB said that the demand for titanium alloy products in China's special equipment field has increased significantly, and orders are relatively full and orders have been scheduled for July to August next year.
The raw material sponge titanium production capacity is in a state of surplus, from 82,000 at the beginning of the year to 59,000, and the price has recently increased to 63,000. As the high-end sponge titanium factories Chaoyang Jinda, Baoti Huashen, Luoyang Shuangrui and others continue to expand production, it is expected that the supply will be sufficient in the future, and the price will likely remain around 65,000 for a long time.
For every 10,000 yuan drop in the price of sponge titanium, the company's gross profit margin will increase by 3.4%. At the same time, XAXB is vertically integrated in the industry chain. At the end of 2018, it obtained 30% of the shares of CYJD Titanium Technology Group, China's largest titanium sponge manufacturer, and can get priority at the bottom of the cost. Sponge titanium raw material.
Production capacity enters a continuous expansion cycle
XAXB currently has a production capacity of 4,950 tons of titanium alloy materials. It is estimated that by 2025, the demand for titanium alloy rods will be about 20,000 tons per year. The production capacity will be expanded to 10,000 tons in the future. Because of the very good demand in the field of special equipment in China, XAXB has expanded its production two years in advance. planning.
It was originally expected that the output of titanium alloy materials this year was 4,600-4,700 tons. Because of the recent addition of two electric arc furnaces, the company's titanium alloy output this year was adjusted to 4,800-4,900 tons. The output is expected to be around 6,000 tons next year, and 7,000 tons in the next year. The production capacity will reach 10,000 tons in 2023.
There is a large demand for superalloys, and the company began to supply batches to the Chinese aviation industry
Titanium alloy accounts for about 20% of the weight of the entire aircraft engine, and the weight of superalloy accounts for 50% of the weight of the entire engine, of which more than 60% are deformed superalloys.
The future market demand for superalloys will exceed that for titanium alloys and may reach more than 30,000 tons after 2025. The company currently has a high-temperature alloy smelting capacity of 2,000 tons, corresponding to 1,000 tons of finished products, and just signed a contract for two 8-ton electric arc furnaces this week to start expanding its high-temperature alloy production capacity.
Superconducting wire is expected to achieve 50% of the global market share within 5 years
The output of superconducting wires last year was 300 tons, accounting for 11% of the global market, and is expected to grow by 40% for the whole year. At the end of 2025, the wire rod market is expected to have a capacity of 4,000 tons. The company uses low gross profit to grab market share, and the company’s market share may reach 50% by the end of 2025
XAXB Advanced Materials Group is mainly engaged in the research and development, production and sales of high-end titanium alloy materials, high-performance high-temperature alloy materials, and superconducting materials. It is the main R&D and production base of titanium alloy rods and wires for aviation in China. It is also the only company in the world that produces niobium-titanium ingots, bars, superconducting wires, and superconducting magnets. The company was listed on the Shanghai Stock Exchange in 2012.
XAXB has successively built a professional production line for high-end titanium alloy rods and wires for aviation, as well as the world's first-class and only domestic NbTi and Nb3Sn superconducting wire production lines.
The company’s main products include titanium alloy bars, wires, profiles, and high-temperature alloy bars; niobium titanium (NbTi) superconducting wires, niobium tin (Nb3Sn) superconducting wires and other advanced materials; superconducting magnets and thermal equipment , Special medical equipment and other high-end equipment. Among them, titanium materials are mainly used for the production of aviation forgings (including aircraft structural parts, fasteners and engine parts, etc.), biological implants and medical equipment manufacturing; high-temperature alloys are used for the manufacture of new aircraft engines and gas turbines; superconducting wires are mainly used For the manufacture of high-field magnets, they will eventually be used in large-scale scientific engineering and advanced equipment manufacturing, including new energy (International Thermonuclear Fusion Experimental Reactor ITER, Chinese Fusion Reactor CFETR), Magnetic Resonance Imaging Instrument (MRI), Nuclear Magnetic Resonance Spectrometer (NMR) ), Magnetron Czochralski monocrystalline silicon (MCZ), proton, heavy particle accelerator, etc.