Kid Rock,
I don't think titanium tracks with gold based upon any fundamentals, only through its association with metals in general. The demand for key metals such as copper, silver, platinum and titanium all have their respective cycles. Their individual prices are set by specific supply and demand. What makes our metal so intriguing, is that there are but a limited number of world wide producers and the largest producer, the one in Kasikstan (sp), is facing a takeover from the Russian government because of the metal's strategic military importance. Through 2005 commercial jet orders alone, we find ourselves sold out of all the titanium that can be produced through the 1st quarter 2008 I believe (at current delivery schedules, this includes military commitments as well). ATI and TIE will be bringing on some capacity within the next year, but titanium prices will continue to rise because of increased applications in other industries for the metal.
I have also heard that composites will play an increased role for commercial jets in the future, but I have been lead to believe, from what I read, that current composites would replace aluminum primarily and that actual percentages of TI used in the manufacturing process would increase to generate more weight efficiencies.
Paul |
