Titanium Strategically Important Metal Loses Appeal

February 22, 2009 | By | Reply More

From toothbrushes to airframes, jet engines to spectacles golf clubs, to replacement joints in humans, and not to forget its growing use in fashionable jewelry, new uses for titanium seem to constantly hit the headlines.

Despite the versatility of this extraordinary metal, global recession has taken its toll on the price.

The Boeing strike, followed by order cancellations and delays to the Dreamliner program was arguably the principal catalyst in the metal and its producers losing  investor appeal. The Boeing situation should not be taken out of context, the current order book will keep the company busy for a few more years yet.

It is the general malaise in base metal prices that has spilled over into this strategically important metal, and so far it has not yet begun to recover.

Titanium dioxide, the metals major derivative, is an essential component of paint, a product in the global firing line during this economic crisis, so it is hardly surprising that demand has taken a tumble.

Are we seeing a bottom and can we now expect to see a recovery in price, as users need to replace the stocks that they have run down since the economic downturn?

We wish we knew the answer but we are taking the opportunity to adorn our wives with titanium jewelry as a long-term investment rather than put our hard earned cash into titanium ingots and store them out of site in the cellar.

A masterstroke in domestic relations, we hope!

The alternative is to look at producers like Titanium Metals (TIE:NYSE),RTI International Metals (RTI:NYSE), this last having beaten earnings estimates despite net earnings being down by over 80% from 2007.

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Category: Titanium

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