b2 strikes again on a winning stock rofl, page-13

this should be good for adn Iluka expects good titanium minerals market
Source: Associated Press

Mineral sand producer Iluka Resources Ltd expects positive market conditions for titanium minerals to continue next year with further price increases tipped.

The company said in a UK presentation it expected to sell all of its supply of titanium minerals in 2006, including new production coming online from the Murray Basin.

It also expects to receive higher prices for its zircon product in 2006 underpinned by a supply deficit.

Iluka is the world's largest producer of zircon, largely used in the ceramics industry, and rutile, used to produce titanium metal or titanium dioxide pigment for the aerospace, aviation and medical industries.

It is seeking to expand its production and sales with the $270 million development of its Douglas mineral sands project in the Victorian section of the Murray Basin.


Titanium just keeps rising
Source: Purchasing

Timet, Allegheny Technologies, and RTI International all are reporting continuing strength in aerospace demand for titanium products. "So, strong demand and growing order backlogs have conferred titanium pricing power to producers, which they are happily exercising," says analyst John Mothersole at Global Insight.

U.S. sponge ingot prices have tripled over the past year and a half and currently exceed $22/lb, a record, with expectations widespread for $24 by next quarter. Some bullish traders are forecasting $30 ingot sometime in 2006 – which probably won't happen.

"Although some additional, upward moves must be expected, prices as high as $30 would be self-correcting," says Mothersole.

"All the apparent industrial strength in the country – even in high-end applications in aerospace – would have trouble enduring titanium sponge prices this high for very long."

Meanwhile, mill product prices are reflecting the higher feedstock prices and are up 58.4% since January 2004.

After having jumped 8.4% in the first half of 2005, Global Insight sees prices climbing another 20% in the second half of 2005.

"We then expect pricing to peak in 2006, as growth in new orders slows – although it should remain at a very healthy level – and production from new capacity ramps up."