Conjuncture of the market of titanium
If we analyze the price dynamics, we can conclude that world prices for the main raw materials for titanium production has been steadily declining, beginning in 2001, contrary to the upward trend in 2003 prices for all other metals in their ores and concentrates. It is inexplicable from an economic point of view and may not last long. At the end of last year rose sharply ferrotitanium and titanium scrap, which will set the new market conditions of titanium. According to experts, the recent rapid growth of the aviation industry, the rapid growth of production has reached the production of steel microalloying with titanium.
According to the forecasts of indicators of AVISMA and VSMPO this year will be clearly better than the previous one.
It is expected that at the end of this year, will merge together these technological and organizational production. 27 March 2004 hosted a meeting of the Board of Directors of JSC «VSMPO», which discussed the possibility of merging JSC AVISMA and JSC VSMPO. The result was the decision to create working group which included experts from both companies and external consultants, their main task is to develop an action plan for the merger of the two companies.
Some analysts believe that this process can prevent «Renova» Viktor Vekselberg, who controls SUAL, and more than 12% stake in VSMPO, the data are not yet confirmed. SUAL is interested in the promotion of their own products rental of KUZOTsM on the world market. Besides S. P. «Uniti» with the American Boeing (Allegheny Technologies), the company oversees American manufacturer of titanium mill products National Forge & Machining and in her plans of acquiring the company that specializiruetsya on smelting of titanium (presumably Lowrаnce Aviation or Pamona Melting). Again, power in the U.S. allow VSMPO to overcome the limitations of the supply of products in the American production of weapons in the country.
But the decline in profitability does not stop VSMPO. The company has decided to implement its authority at the expense of the buyer, it plans to deploy about 20% of the shares in the form of ADR on the stock markets of Russia and America. Analysts believe that the company’s assets too cheaply, however, profitability is forecast to be about $500 million In future plans — public offering of stock, scheduled for next year, it is planned to make the company more understandable and transparent for investors. This is good, because the current activity of the industry of non-ferrous metals remains somewhat exorbitant.
24−27 may 2004, on the ship «Saint-Petersburg» hosted the conference «Titan-2004 in the CIS.», information about it can be found on the website: www. titan-association.com
The topics covered at the conference:
— the titanium market in the world and CIS countries;
— the program of development of the industry;
— trends, developments, raw material bases and industries spongy;
— achievement in metallography and metallurgy of titanium;
— development dynamics of the main applications of titanium;
— use of titanium in medicine, energy, consumer goods;
— market review of waste titanium and ferrotitanium.
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