Analysts see inventory workdown pivotal to titanium's price recovery
Jan 01, 2010 | 10:00 AM
On Wall Street and its outposts, the clues to a turnaround in aerospace titanium lie in the global economy, the airlines' ability to maintain their financial health and aircraft delivery schedules, and signposts unique to the titanium marketnot the least of which is the prospect of drawing down the supply chain's big inventory overhang.
With economic indicators pointing toward an eventual, if fitful, return to growth, the worst fears about a collapse in commercial aerospace demand probably won't be realized, although it might take a while before pre-recession optimism is regained.
"Our expectation is that this global recovery doesn't gain traction until late next year," John Mothersole, IHS Global Insight Inc.'s senior analyst in Washington, said.
While airlines have done a good job of managing capacity during the recession, the result has been to "rationalize" their volume as opposed to adding new capacity. "This doesn't help (to bring in) new orders," Mothersole said of airline economizing and cost cutting. However, it also implies "there's still room" for airlines to grow going forward.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.