(AMM) ATI ramp-up of titanium sponge plant may lift magnesium price

The ramp-up of the Allegheny Technologies Inc. (ATI) titanium sponge facility in Rowley, Utah, may support domestic magnesium prices as the plant's magnesium consumption could tighten domestic supply, market sources told AMM.

The greenfield facility, which began operating in late 2009, produces titanium through a reduction process involving titanium tetrachloride and magnesium metal. A spokesman for the Pittsburgh-based specialty metals producer declined to disclose the volume of magnesium required for the reduction process, but magnesium market sources told AMM the ratio of magnesium to titanium is about one-to-one.

"Every pound of titanium takes a pound of magnesium," one magnesium supplier source said.

The vast majority of that material comes from US Magnesium LLC's Rowley facility since its proximity to ATI's titanium plant makes transporting molten metal economical.

"We are located within a few hundred feet of...

Published

September 08, 2010

21:53 GMT

NEW YORK