Global shipments of titanium
mill products, spurred by both commercial aerospace and
industrial demand, will rise 7 to 10 percent this year after
jumping more than 24 percent in 2011, Titanium Metals Corp.
(Timet) forecast in documents filed with the U.S. Securities
and Exchange Commission (SEC).
Dallas-based Timet, which
estimated that it accounted for 15 percent of all global mill
product shipments in both 2010 and 2011, estimated in the SEC
filing that the global industrys dispatches grew 24.1
percent to 108,000 tonnes (about 238.1 million pounds) last
year from 87,000 tonnes (191.8 million pounds) in 2010.
This years expected
increase will be "driven by continued growth in the commercial
aerospace and industrial sectors," Timet said in the SEC
filing. Industry shipments to the commercial sector last year
were up 14 percent as aircraft build rates and supply chain
inventory levels rose to support both current production and
the anticipated increase in output levels into 2012, the
Richard J. Harshman, chairman,
president and chief executive officer of Pittsburgh-based
Allegheny Technologies Inc. (ATI), estimated that his
companys titanium shipment growth rate will slow to 7 to
8 percent this year from 20 percent in 2011. Harshman said that
ATIs growth in aerospace is "on the jet engine side,"
both in terms of mill products as well as the forgings and
castings produced by its Cudahy, Wis.-based ATI Ladish unit,
which it purchased last year. The sector also includes
Jet engines accounted for 15
percent of ATIs total corporate revenue of $5.18 billion
last year, presumably reflecting in part ATIs acquisition
of Ladish, with engine-related sales rising 78 percent from the
previous year. The airframe sector accounted for 8 percent of
revenue, with sales up 18 percent.
Meanwhile, the global market
could get more competitive now that the fledgling Mexican
aerospace industry has won admittance to the Wassenaar
Arrangement, an international group established in 1995 to
control the sale of military equipment, including small arms,
tanks and aircraft.
"It will allow us to enter the
(military air) defense market . . . which according
to my estimates is four to five times larger than the
commercial aerospace sector globally," said Carlos Bello,
managing director of Mexican aerospace industry association
Femia. Exports by Mexicos aerospace industry rose to $4.5
billion last year from $3.4 billion in 2010, and he expects
exports to top $5.1 billion this year, reach $7.5 billion in
2015 and perhaps exceed $12 billion by 2020.