NEW YORK A key
titanium surcharge is continuing to fall in the third quarter
but at a much slower pace than earlier in 2013.
surcharge for aerospace standard alloy 6-aluminum/4-vanadium
bar and flat products is $4.86 per pound in July, down 3.6
percent from $5.04 in the second quarter, while its surcharge
for titanium 6/4 billet is down 3.7 percent to $4.42 per pound
from $4.59 in the same comparison. Surcharges for titanium 6/4
Eli (extra-low interstitial) bar, flats and billet are the same
as for standard products.
decline follows much larger falls in both the first and second
quarters, when Allvacs benchmark 6/4 surcharge was off
15.4 percent and 10.6 percent, respectively.
"There were some big
drops earlier in the past six months," one buyer source said.
"Maybe things have stabilized. Maybe weve bottomed out
Allvac, a Monroe,
N.C.-based unit of Allegheny Technologies Inc., doesnt
disclose the specific elements of its surcharges or their
portions, but they are assumed to include scrapone of the
most significant componentssponge, master alloys and
modest third-quarter drop in surcharges would appear to support
market sources who said at the beginning of the second quarter
that scrap prices had appeared to stabilize at low levels (
amm.com, April 5). However, neither does it
contradict the view of some others that theres little
solid evidence yet that scrap is poised to move up.
While the surcharges
on most other popular alloys were down at least slightly, some
actually rose. The third-quarter surcharge for titanium
6-aluminum/2-tin/4-zirconium/2-molybdenum, widely used in
aircraft engines, edged up slightly to $6.07 per pound on bar
and flats from $6.03 in the second quarter and to $5.53 per
pound on billets from $5.49 in the same comparison.
3-aluminum/2.5-vanadium, primarily used for tubing, was off 1.7
percent to $5.07 per pound for bars and flats and $4.62 per
pound for billets.
One surcharge that
defied the trend and declined at a faster pace in the third
quarter was commercially pure Grade 2 titanium, used mainly for
nonaerospace industrial applications. The charge on CP Grade 2,
which was down 2 percent in the second quarter, fell 6.4
percent for the third quarter to $4.37 per pound for bar and
flat products and $3.98 per pound for billet.