European aircraft manufacturer Airbus expects its titanium demand to decrease in 2025, after demand in 2024 was lifted above build requirements because of buffer stock accumulation, but Airbus urged titanium suppliers to prepare for demand increases in 2026.
Ramp-up preparations in 2024, which were underlined by steep ramp trajectories across all programmes, led to some buffer stock accumulation. This resulted in titanium offtake from suppliers exceeding airframers' actual requirements, Airbus' vice-president of metallic material procurement, Olivier Maillard, told delegates at the International Titanium Association conference in Austin. A temporary adjustment will need to occur in 2025 and from 2026 onwards, titanium demand and ramp trajectory are expected to normalise.
Demand in 2024 slightly outpaced 2019 volumes, as previously forecast. But Airbus' updated position indicates a curb on further increases from 2025 to 2026.
Projected demand in 2026 will remain below levels in 2017 and 2018, when Airbus was accelerating its titanium-intensive A350 programme and the A380 aircraft was still in production.
Exact projected 2026 volume figures were not disclosed.
In its narrowbody programmes, Airbus is currently working toward a rate of 75 aircraft per month in 2027 for the A320, deferred by one year from 2026, and an unchanged A220 rate of 14 per month in 2026.
The A320 rate deferral was caused by specific supply chain challenges as suppliers are not ramping up at the rate required by Airbus, leading to high levels of missing parts and shortfalls in engines.
Maillard said Airbus is ready for the A320 ramp-up with new final assembly lines in Toulouse, France; Hamburg, Germany; Tianjin, China; and Mobile, US. But it is conscious that the supply chain is facing difficulties and can adjust rates as necessary.
In its widebody programmes, Airbus is working towards a production rate of four per month in 2024 for the A330 and an upward revised rate of 12 per month in 2028 for the A350. Although the number of widebody aircraft produced is lower than narrowbodies, they remain the primary driver for titanium demand because of their overall weight and a higher share of titanium required. For example, an Airbus A350 is about 14-15pc titanium by weight, while an A320neo is about 10pc.
Ti sourcing from VSMPO-Avisma continues
Maillard reiterated Airbus' commitment to honouring existing contracts with Russian titanium supplier VSMPO-Avisma, in compliance with applicable sanctions.
"There are no sanctions on VSMPO titanium today so yes, we continue to source VSMPO titanium," Maillard said.
But if sanctions were to be introduced, Maillard stressed that Airbus would not continue to source from VSMPO and would immediately comply with sanctions.
Ongoing geopolitical tensions underscore the need for diversification across all of Airbus' procurement programmes.
