Oversupply weighs on industrial titanium: ATI

May 01, 2013 | 06:24 PM | Frank Haflich

Tags  ATI, Allegheny Technologies, titanium, Richard Harshman, Yanbu 3, desalination project, commercially pure titanium, 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 ATI’s 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 don’t just continue to build sponge," according to a transcript of the call. Because Rowley’s 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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