Oversupply weighs on industrial titanium: ATI
May 01, 2013 | 06:24 PM
| Frank Haflich
LOS ANGELES Allegheny Technologies Inc. (ATI) is looking to benefit from higher shipments of nonaerospace, industrial titanium this year, but might nevertheless reduce its sponge output rate as it moves to avoid surplus inventory.
Richard Harshman, chairman, president and chief executive officer of the Pittsburgh-based specialty metals producer, noted last week during a quarterly investors conference call that ATIs Rowley, Utah, sponge operation is at about 60 to 65 percent of its 24-million-pound-per-year capacity.
However, with overall supply adequate, ATI might lower that utilization rate "a little bit" further so that "we dont just continue to build sponge," according to a transcript of the call. Because Rowleys sponge can presently be used in the aerospace industry only for "standard-grade applications and not for rotating material" for engines, its inventory is being managed to prevent oversupply, he said.....
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