China's Rising Titanium Sponge Export and the Future of Aerospace Supply Chains

China's Titanium Sponge

A Surplus That Could Fill a Global Gap

With certified titanium sponge supplies projected to hit a deficit in the next four years, China’s output capabilities become increasingly relevant. While traditional producers like Japan, Saudi Arabia, and Kazakhstan near full capacity, major aerospace companies such as Airbus and Safran are considering alternatives to mitigate supply risks. China produced 218,000 tons of titanium sponge in 2023, marking the ninth consecutive year of production growth, largely due to domestic oversupply, according to the China Nonferrous Metals Industry Association.

However, introducing Chinese sponge to critical applications is no simple task. Certification timelines for standard quality (SQ) and premium quality (PQ) sponge can extend from three to over five years. The long lead time is essential for parts such as disks and blades in commercial aero engines, where safety standards demand rigorous checks for oxygen and nitrogen contamination. “China’s significant production capabilities are promising, but certification processes and qualification timelines are a major barrier,” said Marty Pike, vice president of global commercial strategy at U.S. metals producer ATI, at a recent titanium industry event in Texas.

Geopolitical Concerns and Legislative Guardrails

While Airbus has signaled openness to exploring Chinese titanium sponge, the decision ultimately lies with engine manufacturers. Other industry leaders, however, cite concerns over potential sanctions that may result from China’s involvement, given rising Asia-Pacific tensions. Any U.S. or EU industries reliant on Chinese titanium sponge could face supply chain vulnerabilities if diplomatic relations falter.

U.S. imports of Chinese titanium sponge are rising despite tariffs, driven by cost pressures. The average price for Chinese imports to the U.S. is notably lower than that from Japan, even after duties, offering an attractive price point. A recent bill, the Securing America’s Titanium Act, seeks to balance this by waiving the standard 15% tariff on titanium sponge but maintaining a 25% tariff on Chinese imports. The proposed legislation also aims to monitor foreign influence over the U.S. supply chain, underscoring the careful stance lawmakers are taking toward titanium imports.

EU and Future Outlook

Europe's titanium sponge import dynamics are less transparent due to limited reporting and autonomous tariff suspensions. Unlike the U.S., EU markets face no duty on imports, making it an attractive market for Chinese exporters. While the aerospace sector remains cautious, other industries such as medical and industrial may more readily accept Chinese sponge as they seek cost-effective solutions.

As the titanium market evolves, balancing supply demands, certification processes, and geopolitical risks will shape the future of titanium sponge in aerospace, with China poised as a powerful, if complex, player in the unfolding narrative.