Titanium: Industrial Base, Price Trends, and Technology Initiatives (Rand Corporation Monograph)

Between 2003 and 2006, the price of titanium more than doubled. The authors attempt to answer four primary questions: What triggered this price surge? What are titanium1s future market prospects and emerging technologies? What are the implications for the production cost of future military airframes? How might the Department of Defense mitigate the economic risks involved in the titanium market? Titanium accounts for a significant portion of the structural weight of many aircraft. Its high strength-to-weight ratio, great strength at high temperatures, corrosion resistance, and thermal stability make it ideal for airframe structures. However, in recent years a combination of multiple factors has caused a major spike in titanium prices that is expected to significantly influence the acquisition costs of future aircraft. This monograph examines the titanium industrial base, titanium production technology, and the factors underlying price fluctuations in the titanium market to assess their implications for the production cost of future airframes. The authors also suggest how the Department of Defense might mitigate the economic risks involved in the titanium market and reduce the cost of raw materials used in military airframes. In contrast with existing studies, which mainly focus on aircraft demand cycles in analyzing titanium price fluctuations, the monograph highlights the role of supply-side drivers, China's impact on the titanium market through a cross-market substitution effect, the significance of industrial demand, and the increase in spot market transactions Titanium accounts for a significant portion of the structural weight of many aircraft. Its high strength-to-weight ratio, high strength at high temperatures, corrosion resistance, and thermal stability make it ideal for airframe structures. However, in recent years a combination of multiple factors has caused a major spike in titanium prices that is expected to significantly influence the acquisition costs of future aircraft. This monograph examines the titanium industrial base, titanium production technology, and the factors underlying price fluctuations in the titanium market to assess their implications for the production cost of future airframes. The authors also suggest how the Department of Defense might mitigate the economic risks involved in the titanium market and reduce the cost of raw materials used in military airframes. In contrast with existing studies, which mainly focus on aircraft demand cycles in analyzing titanium price fluctuations, the monograph highlights the role of supply-side drivers, China's impact on the titanium market through cross-market substitution effect, the significance of industrial demand, and the increase in spot market transactions Title taken from PDF title screen (viewed May 4, 2009).