Key facts
- Aircraft engine manufacturing is driving increased demand for nickel, nickel-based superalloys, and premium-quality titanium.
- OEMs significantly increased engine deliveries in the first half of 2026.
- Demand for critical high-temperature alloying elements like tungsten, rhenium, tantalum, niobium, hafnium, and cobalt has surged.
- Significant investments are being made in new melting, casting, and forging capacity for alloys.
- Lead times for premium-quality titanium billet have increased to 3-6 months.
Aircraft engine manufacturing is significantly boosting demand for nickel, nickel-based superalloys, and premium-quality (PQ) titanium products. This trend is expected to continue as new alloy production capacity comes online, according to industry attendees at the Farnborough International Airshow.
Engine original equipment manufacturers (OEMs) saw a substantial increase in deliveries during the first half of 2026, leading to higher material requirements for melters, casting foundries, and forgers. US-based Aerospace delivered 269 widebody engines, up from 222 a year prior, while UK OEM Rolls-Royce delivered 157 widebody units, an increase from 122. CFM International, a joint venture between GE and France's Safran, delivered 1,030 narrowbody LEAP engines, compared to 729 in the previous year. Pratt & Whitney, part of RTX, reported a 15% increase in second-quarter deliveries.
While engine supply and aftermarket capacity have been bottlenecks, first-half deliveries suggest an easing of these constraints. Communications from Airbus and Boeing indicate improving engine availability, with Boeing anticipating resolution of GEnx engine delays and Airbus addressing cabin-related constraints on the A350. Demand for PQ titanium billet, crucial for engine components, is strong, with lead times extending to 3-6 months. Producers also noted robust demand for titanium alloy and Inconel 718 fasteners, directly linked to OEM build rates.
Further upstream, demand for critical high-temperature alloying elements such as tungsten, rhenium, tantalum, niobium, hafnium, and cobalt has surged, driving up their prices amid supply tightness. Engine OEMs and specialty alloy producers have invested heavily in expanding melting, casting, and forging capacity, with several expansions announced at Farnborough. These investments are aimed at increasing production of nickel-based superalloys for compressor and turbine components. Alloy producers will require more nickel and alloying elements as new capacity is commissioned between late 2027 and 2030. However, they will need to balance demand from commercial aerospace with other sectors like defence and industrial gas turbines.
Specific expansion projects include ATI's addition of a fifth vacuum induction melting furnace in North Carolina, increasing capacity by 8-10%. Doncasters is investing $50 million in a new superalloy facility in Auburn, Alabama. Special Melted Products (SMP) secured multi-year contracts with Rolls-Royce worth approximately $240 million and is expanding its furnace and forging press capabilities. Safran has renewed a contract with Aubert & Duval for CFM Leap engine parts and is commissioning new presses and a casting facility. Melrose-owned GKN is also investing in its foundry business to enhance in-house superalloy casting production.