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Company: Titanium Metals (TIE)
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  Russian titanium exports may erode pricing

VSMPO-AVISMA is the world's largest titanium producer, and has recently (2007) formed a joint venture with Boeing to provide titanium products for the 787 Dreamliner.

And from the the 2007 10-K: "In the U.S. titanium market, the increasing presence of foreign participants has become a significant competitive factor. ... imports of titanium sponge, ingot and mill products, principally from Russia and Kazakhstan, have increased and have had a significant competitive impact on the U.S. titanium industry.

Generally, imports of titanium products into the U.S. are subject to a 15% “normal trade relations” tariff. For tariff purposes, titanium products are broadly classified as either wrought (billet, bar, sheet, strip, plate and tubing) or unwrought (sponge, ingot and slab). From time-to-time, the U.S. government has granted preferential trade status to certain titanium products imported from particular countries (notably wrought titanium products from Russia, which carried no U.S. import duties from approximately 1993 until 2004). It is possible that such preferential status could be granted again in the future, and we may not be successful in resisting efforts to eliminate duties or tariffs on titanium products."

Sources: http://www.reuters.com/article/tnBasicIndustries-SP/idUSL2139098320070821 - http://en.wikipedia.org/wiki/VSMPO-AVISMA - http://www.secinfo.com/duRu6.td.htm#1stPage

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  Growing inventory may indicate weak sales

Inventories have increased by 12% to 563 million USD over the past year, while there remains a 1 billion USD backlog. Due to the growth in world supply of titanium, the price of titanium has decreased since mid-2007, and the stockpiling of inventory suggests that TIE may have difficulty selling its products at its desired price.

Source: http://www.sec.gov/Archives/edgar/data/1011657/000101165708000002/form_10k.htm, F-17

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