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Metallurg operates production facilities in the U. Metallurg's products are primarily sold to one of three major market sectors: Overall operating conditions in each of these sectors have been challenging over the past few years with significant pressure on prices caused by increased competition, lower overall demand from customers and lackluster economic conditions worldwide.
These difficult business conditions persisted throughout most of Improvement in demand began in the fourth quarter of and continued to improve throughout due to an improved economic environment in Europe and the Americas and changes in consumption patterns in China.
Additionally, a declining U. While we cannot predict demand or prices in the markets Mhr 405 self realization serve, this discussion presents a general overview of each of our major market sectors.
Demand from the aluminum market continued to rebound from the low levels experienced early incoinciding with increased global economic activity.
On the supply side, there still exists a significant amount of excess, as well as idle, capacity in the industry. While prices for aluminum continued to increase inour main products - aluminum master alloys and compacted products - continue to be subject to pricing pressure, primarily due to overcapacity.
Continuing consolidation in the aluminum industry also has contributed to the pressure on prices for our products. These same conditions have continued throughoutas the industry still faces overcapacity and significant price competition. DuringMetallurg announced the closure of its master alloy facility in Norway to reduce excess capacity in the industry.
The closure of the Norway plant was completed by the end of the third quarter. Customers will continue to be served from our facilities in the U.
As a result of this closure and higher demand within the aluminum industry, pricing for our products have shown some improvement.
Metallurg continues to seek higher prices for its major products and to implement cost reduction initiatives to enhance operating performance. The domestic steel industry continues to operate at moderately high levels of production.
Industry fundamentals for the steel sector have significantly improved from the difficult conditions seen over the prior years, particularly as a result of the consolidation of a number of producers within the industry and the weak U.
Duringfundamentals in the ferrovanadium market changed as a major producer closed operations due to very low price levels and other factors.
Due to a shortage of raw materials, Metallurg was forced to significantly cut production rates at its processing facility in Ohio, adding to a reduction of ferrovanadium units in North America.
Also, a labor strike at this facility during the fourth quarter of and the first quarter of impacted overall production rates. Demand for ferrovanadium has improved duringdriven by increasing world steel production and increasing use of specialty steels containing ferrovanadium in Chinese construction applications.
As a result, prices for ferrovanadium have increased in and were significantly higher in In the first quarter ofwe were successful in securing a significant long-term source of raw materials to lower production costs and enhance profitability.
In Aprilthe labor strike affecting the ferrovanadium production facility in Cambridge, Ohio was settled with the ratification of a new three-year contract. The effects of securing new long-term raw materials arrangements, settling the labor strike and increased demand and pricing for ferrovanadium have improved profitability throughout During the fourth quarter ofmarket prices have moved significantly higher.
We expect demand for ferrovanadium to remain strong and prices to remain well above long-term historical trend levels throughout Because prices under our principal raw materials supply contracts for our ferrovanadium production operations are referenced to historical market prices for vanadium, based on these price trends, we expect the cost of our raw materials to increase in The superalloy industry is rebounding from low production levels over the past few years.
This increase in activity is driven by higher military spending, increased applications for energy related projects and improving commercial airliner production build rates. Throughoutprices for titanium have increased significantly due to higher demand and supply shortages.Graduates of University of Oklahoma - the names, photos, skill, job, location.
Information on the University of Oklahoma - contacts, students, faculty, finances.
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