LOS ANGELES A benchmark
titanium raw material surcharge has taken a second significant
fall this year.
The ATI Allvac unit of
Pittsburgh-based Allegheny Technologies Inc. has reduced its
second-quarter surcharge on standard 6-aluminum/4-vanadium bar
and flat products to $5.04 per pound, down 10.6 percent from
$5.64 in the first quarter and 32 percent below $7.41 in the
second quarter of last year. Monroe, N.C.-based Allvac also cut
its billet surcharge by 10.7 percent to $4.59 per pound from
$5.14 in the first quarter.
Second-quarter surcharges on
titanium 6/4 Eli (extra-low interstitial) bar, flats and billet
are the same as on standard products.
The latest surcharge decline
follows a 15.4-percent reduction in the first quarter (
amm.com, Jan. 2), the largest drop in nearly two
While Allvac doesnt
disclose the specific elements of its surcharge or their
portions, they are assumed to include scrap, sponge, master
alloys and energy, with scrap one of the largest components.
Some market sources, who assume the latest surcharge decline
reflects a weak first-quarter scrap market, said scrap prices
have stabilized lately at low levels, and others insist that
theres no concrete indication yet that scrap is poised to
Meanwhile, lead times on such
commodity products as 6/4 bar remain short. "Everyone is
telling us that deliveries should start pushing out later in
the second quarter, but I just havent seen it yet," one
distributor source said.
Surcharges for other widely used
alloys also were cut. Titanium
6-aluminum/2-tin/4-zirconium/2-molybdenum, popular for aircraft
engines, is down 9.3 percent in the second quarter to $6.03 per
pound for bars and flats and 9.4 percent to $5.49 per pound for
billet; and titanium 3-aluminum/2.5-vanadium, widely used for
tubing, fell by 9.2 percent to $5.16 per pound for bars and
flats and to $4.70 per pound for billet.
The surcharge on commercially
pure Grade 2 titanium, used primarily for nonaerospace
industrial applications, was trimmed by just 2.1 percent to
$4.67 per pound for bars and flats and to $4.25 per pound for