If we analyze the price dynamics, we can conclude that the world prices for the main raw material for titanium production have been steadily going down since 2001, which contradicts the upward trend in prices for all other metals of their ores and concentrates in 2003. This is inexplicable from an economic point of view and cannot last long. At the end of last year ferrotitanium and titanium scrap rose sharply, which will set a new titanium market conjuncture. According to the experts, aviation industry has been rapidly developing lately, production of titanium micro-alloyed steel has grown rapidly.

According to the forecasts, the performance of AVISMA and VSMPO this year will obviously be better than that of the previous year.
It is expected that at the end of this year these technological and organizational productions will merge. On March 27, 2004 the VSMPO Board of Directors discussed possibilities to integrate AVISMA and VSMPO. It resulted in a decision to establish a work group consisting of specialists from both companies and external consultants whose main task is to draw up an action plan for merger of the two companies.

Some analysts think that Victor Vekselberg's Renova, which controls SUAL and has a 12-percent stake in VSMPO, might hinder the process; so far this information has not been confirmed. "SUAL itself is interested in promoting its own rolled KUZOTSM products on the world market. Apart from S. P. Uniti with American Boeing (Allegheny Technologies), the company controls American manufacturer of titanium mill products - National Forge & Machining and it has plans to purchase a company which specializes in titanium melting (presumably, Pamona Melting). We would like to mention once again that the production capacities in the US territory allow VSMPO to circumvent the restrictions imposed on supplies to the US armaments manufacturers.

But decrease of its profitability does not stop VSMPO. The company has decided to realize its authority through investments; it plans to place about 20% of its shares in the form of ADRs on Russian and American stock markets. The analysts think that the assets of the company are too undervalued; nevertheless, it is expected that the profit will amount to $500 mln. The long-term plans are to float shares publicly next year in order to make the company clearer and more transparent for investors. This is gratifying, because the present activity of the nonferrous metals industry remains something beyond the clouds.

On May 24-27, 2004 "Titanium-2004 in CIS" conference was held on "St.-Petersburg" ship. Information about it you can find at: titanium-association.com
Themes discussed at the conference:
- titanium market in the world and CIS countries;
- industry development program;
- titanium raw material base and sponge production development trends;
- achievements in metal science and titanium metallurgy;
- dynamics of development of the main fields of titanium applications;
- titanium applications in medicine, power engineering, consumer goods;
- reviews of titanium waste and ferrotitanium markets.