Spotlight Boeing: Russia Threatens to Cut Off Titanium

Mike Mish Shedlock

You can only push countries so far before they decide to push back. Russia may do just that.

Please consider Russia Threatens to Cut Off Crucial Titanium Exports to Boeing.

Russian lawmakers have submitted a wide-ranging bill that could freeze crucial exports to the United States.

The bill, which was drafted by leading lawmakers at the State Duma in response to the new round of U.S. sanctions announced last week, proposes a wide range of restrictions for U.S. businesses in Russia and for cooperation with the U.S. Among them is a proposal to ban or restrict titanium exports that are crucial for U.S. aircraft maker Boeing.

Boeing and other aircraft manufacturers are increasingly reliant on titanium as a strong but lightweight material for use in wing assemblies, steering wheels, hydraulic systems and a number of other parts, CNBC reports.

A Boeing 777 has up to 12 percent of titanium in its airframe, and Russia is the world's largest titanium producer and the main supplier to Boeing.

Duma speaker Vyacheslav Volodin told Russian news agencies that the bill could be put up for vote next week.

Stop the Nonsense

Sanctions on Russia and tariffs on China are both counterproductive. Nonetheless, here we go again.

Europe may not go along with Russia sanctions, so perhaps the US can get titanium via Europe, at extra cost, if Russia carries out the threat.

At a minimum, expect the price of titanium to rise.

Mike "Mish" Shedlock

Comments (16)
No. 1-16
thimk
thimk

Although this is old news that has recently resurfaced , japan has located large deposits of rare earths. Apparently it was initiated after China suppressed their exports of the metals. The point being is when a country sanctions/restrict a vital material/product for export other avenues of procurement are developed or replacement materials substituted . Certainly not a win for the exporting country. https://phys.org/news/2018-04-japan-team-semi-infinite-rare-earth.html

Onni4me
Onni4me

"Europe may not go along with Russia sanctions" I believe the exact opposite. Merkel, Juncker & ally love to sanction and punish Russia. Nothing has been learned from the uselessness of such actions. Kreml couldn't give a hoot what they think. Free trade with Russia would solve a lot of problems in the long run but that would be too wise for our "leaders".

Wagner-
Wagner-

Hey, @Mish. There is some problem with your blog. I have to register again and again with a new account to post comments. Earlier under "Gold's Brick Wall" I posted this response, but I can see it only if I am signed in from my account. If I log out, then I can't see it anymore (here is screen-shot with what I can see when logged in, but others probably can't see):

https://s3-us-west-2.amazonaws.com/maven-user-photos/mishtalk/economics/2Mt5Sb28dUCH14gnrMtkMg/GSnrLWY2ikCXq3Lw9fzlUA

Can you check where is the problem?

Kinuachdrach
Kinuachdrach

It is really sad that Democrats reacted to the people's judgement on Crooked Hillary by inventing the story that Trump won only because the Russians interfered in the election. If not for that Democrat nasty lie, there would have been a very good chance that Presidents Trump & Putin would have cooperated quite effectively -- both are patriots, looking out for the best interests of their countries.

But those lying Hillary supporters boxed President Trump in -- any cooperation with Russia would have been pounced on as "evidence" of a quid pro quo for Russia screwing Hillary. Their extreme partisan stupidity unfortunately has real world consequences, for which we will all suffer.

truthseeker
truthseeker

Mish waiting to hear your remarks on Syria.

Tengen
Tengen

hear! hear! Guess it was awfully nice of Orange Julius to wait until markets were closed to start missile strikes. Daylight is coming soon in Damascus, will see what damage has been done.

thimk
thimk

well i guess it's not such a "rare" earth after all . the deal is that it is incredibly "messy" to produce. Titanium may be a different story . But don't we have enough old planes sitting in the desert to recycle the metal ?

pgp
pgp

If anyone thinks mining rare earth metals and titanium from US soils is good they're not seeing the whole picture. Even gold has an evil side. The metals we mine don't just appear in the ground as ore they are nearly always mixed with other metals many of which are extremely poisonous. So frack away and dig up the countryside until all the poisons leach out into our rivers and underwater aquifers so we can all enjoy contaminated tap water and agriculture adulterated with traces of poisonous metals. Our seas are already full of plastics and mercury what's a little extra cadmium in our lettuce. So go ahead, dig it all up, spray it with insecticide, prop it up with preservatives then store it in plastic and let the medical system take care of the increasing cancers and senility in the next generation of Americans. Hooray for infinite growth economics where corporate wealth is all that matters.

ReadyKilowatt
ReadyKilowatt

"A Boeing 777 has up to 12 percent of titanium in its airframe, and Russia is the world's largest titanium producer and the main supplier to Boeing."

Huh? 12% of the world's supply of titanium is used in each aircraft?

Kinuachdrach
Kinuachdrach

History: Before the American Civil War, cotton was one of the most important traded commodities in the world, and most of it came from the US South. The Confederate States expected to use their control of that commodity to swing the evil Europeans over to their side and have them help defeat the North. But instead the Brits started growing cotton in British-controlled Egypt, and history took its course.

There are lots of all kinds of minerals distributed across the planet. The problem in North America is mainly excessive regulation -- which could be changed with a stroke of the pen. Short-term, Russia could use its position as a titanium supplier to make life difficult for the West; longer-term, Russia would simply be creating competitors and losing market share.

Maximus_Minimus
Maximus_Minimus

Messy indeed. Rare earths are not so much rare as they are scattered. Yet, gold is mined even if the concentration is 1g per ton of rock with the cyanide method. If you are ready to pay 1000-2000 dollars per ounce, it's possible.

MissionAccomplished
MissionAccomplished

"The Capitalists will sell us the rope with which we will hang them." Is that statement backwards now or is the world upside down?


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