THC, The titanium story is a simple one of a vital commodity where the stocks of inventory are too high at the users. RTI and TIE have already paid through the nose for that problem. In the meantime, the main users, airplane producers, have noticed reduced demand for their products. The simple fact is that this story happens every cycle. People oversell the commodity producers because they will never come back. And they always do.
Uranium is similar, though more like the palladium and platinum market. As your chart showed, we produce less than we use, but the stocks are huge, so the price has declined. The guessing game is when we hit the "wow, we don't have that much left stage." I don't think we are quite there yet, so I am waiting to load up on uranium stocks later this year.
Just a caveat. I know a lot about palladium and platinum and rhodium and consider myself, in my typical incredible modesty <g>, one of the world's savviest traders of the futures. I don't know nearly as much about titanium. And much less than that about uranium. So, you may wish to tap some other sources, especially on uranium. |
