The aerospace sector was still recovering from the Covid-19 pandemic when it was hit by numerous challenges related to russia’s full-scale invasion to Ukraine. The hardest include the potential supply shortage of titaniumthat is a key metal for aircraft manufacturing.
▪ The Covid slump in new aircraft production of all shapes and sizes actually helped fuel a surplus of titanium amid a sluggish international travel recovery. According to Bloomberg, it will likely be several years before major airplane-makers Boeing and Airbus return to pre-pandemic levels of big (twin-aisle) jet manufacturing, if they ever do at all.
▪ Wary of the volatile geopolitical situation, Boeing and engine-maker Safran SA started to stockpile buffer inventory of titanium beforehand. In January 2022, Boeing CEO Dave Calhoun admitted that the company is protected for “quite a while”. On March 7, Boeing announced that it would suspend purchases of titanium from russia, whereas its EU rival Airbus continues to rely on russian supply. However, the ongoing war will definitely impact titanium supplies for aerospace giants in the medium- and long-term.
▪ To date, russia remains an important source of titanium, and war-induced disruptions will have ripple effects and bring changes to the supply chains. Therefore, other leading producers of titanium could ramp up their capacity, including Ukraine that before February 24 ranked 5th as world titanium exporter with 7.2% of global output. Ukraine is one of the 5 leading countries in the world in terms of proven reserves and one of the few countries with a closed-loop production in the titanium industry — from mining and processing of titanium iron ores (mostly ilmenite concentrate) to manufacturing of finished products.
🔹 For instance, UMCC produces 20 thousand tons of titanium per year. The company exports to 30 countries and is one of the world’s largest producers of titanium raw materials, occupying 4% of the world market. Overall, the titanium industry can become one of the drivers of Ukrainian economic growth once the war ends.
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