Boeing Slides After Russia Threatens To Halt Titanium Exports

Update: It appears the humans finally read the news and Boeing stock is sinking... Russian Deputy PM says a decision on counter measures on the US will be made after they have analyzed the full impact of US sanctions on Russia.

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As we detailed two hours ago, last week, we highlighted four 'weapons' that China has to counter US aggression  (dump US debt, devalue the yuan, attack the petro-dollar's dominance, and limit sales of rare earth metals).

While China produces 92% of the world's rare earth metals, Russia is also a key supplier.

And now it seems that Russia has been reading from the same playbook as RT reports Russia's Federation Council is looking to adopt counter-sanctions against the US, under which the country may ban exports of titanium components to aircraft giant Boeing, according to Russian Senator Sergey Ryabukhin.

"Among the rare earth metals that Russia supplies to the United States is titanium, which is necessary for the technological cycle of production of Boeing," Ryabukhin told RIA Novosti.

As of last year, 40 percent of Russian titanium aircraft parts were sold to Boeing and 60 percent to its European rival Airbus, according to a spokesman for Russia’s Rostec corporation.

Russia could also ban the supply of RD-180 engines used by NASA and the Pentagon, the senator added.

“These rocket engines are used not only by NASA, but also by the Pentagon on their satellites. It means the US uses these rocket engines to launch their military satellites," he said.

Earlier on Friday, Russian deputies announced an upcoming response to the American sanctions imposed last week. According to State Duma Vice Speaker Ivan Melnikov, the Russian response would include ending cooperation with the US in the nuclear industry, aircraft building and airspace.

“Russia is able ‘to annoy’ the US by stopping or severely restricting cooperation in outer space, or by cutting supplies of components for Boeing aircraft, [and] close the supply of titanium," said Petr Pushkarev, chief analyst of TeleTrade.

Russia may also limit the supply of drugs, tobacco and alcohol from the United States.

It seems the trade wars just went global.

Comments

Winston Churchill nmewn Fri, 04/13/2018 - 08:32 Permalink

At what cost ?

Theres a good reason why Atlas Aircraft in South Africa was used to procure,from Russia, all the titanium

for the western MIC's in the cold war.The soviets turned a blind eye but knew exactly what was going on.

A friend of mine tried to produce titanium in Australia and failed,struck it rich in gold though.

In reply to by nmewn

PrayingMantis Winston Churchill Fri, 04/13/2018 - 08:44 Permalink

 

... this is where you’ll find the summary of that Tit deal ... >>> http://www.boeing.com/resources/boeingdotcom/company/key_orgs/boeing-international/pdf/russia-cisbackgrounder.pdf

 

... “Russian titanium producer Verkhnaya Salda Metallurgical Production Association (VSMPO, now VSMPO-AVISMA) is a Boeing partner and supplier. Boeing awarded  its first contract to VSMPO in 1997. Boeing Commercial Airplanes currently purchases 35 percent of its titanium supply from VSMPO-AVISMA. Each 787 Dreamliner contains 56 parts made of Russian titanium, weighing about 22 tons, including heavily machined components from joint venture Ural Boeing Manufacturing and raw material from VSMPO-AVISMA. Boeing and VSMPO-AVISMA are performing joint research and development in new alloys. The Boeing–VSMPO Innovation Center was established in 2000 to expand cooperation and continue new alloy development. In 2006, Boeing and VSMPO also announced a joint venture agreement for the rough machining of titanium forgings, and the 50/50 equity joint venture, Ural Boeing Manufacturing (UBM), opened in July 2009. Russian Prime Minister Vladimir Putin and Gary Locke, U.S. Secretary of Commerce, attended the UBM opening ceremony in Moscow.”

 

... and sanctions can hit both ways ...

In reply to by Winston Churchill

thisandthat fx Fri, 04/13/2018 - 14:47 Permalink

Scarce would be a better name.

Anyway, the "problem" with titanium is the cost of refining it, otherwise it'd have probably already replaced steel, alu in many, if not most uses.

Aluminium also used to be expensive to refine, reason why it's atop the Washington obelisk: it was considered a precious metal, back then...

In reply to by fx

Freddie Gaius Frakkin'… Fri, 04/13/2018 - 10:23 Permalink

Russia should just raise prices 20 to 50%.  Take the extra money and build more S-400 Triumphs and more Kalibrs plus small ships to carry the Kalibrs.  They can put Kalibrs in shipping containers on pretty much any ship, subs, truck, train, etc..

https://www.youtube.com/watch?v=X7UjOXanJcs

If you want faster delivery - use the Sunburn.

https://www.youtube.com/watch?v=GbPFEpJSRT8

I am not anti-America - I am anti Rothschild-Soros Pedo America Satan-yahoo, Epstein pedo and spirit cooking, anti Congressmen and Sentaosr going to Washington to become multi millionaires. .

 

 

In reply to by Gaius Frakkin'…

OverTheHedge PrayingMantis Fri, 04/13/2018 - 10:19 Permalink

Sanctions can work both ways....

 

My immediate thought was to keep supplying them, but compromise the quality. My thinking was more for the rocket engines to the Pentagon - if 50% of their launches started failing, they lose not only the satellite launch, but the actual work to create said satellite, and the cost of the engine. Seems a bit harsh to do that with passenger aircraft, but it would cripple Boeing if their fleet started to fall of of the sky.

Would that come under the heading of asymetrical warfare?

In reply to by PrayingMantis

Hope Copy nmewn Fri, 04/13/2018 - 13:08 Permalink

Ivan produces this metal that is under a UN mandate.  Make no mistake, the price of Ferro-Titanium will skyrocket if the US companies have to do this type  of work..

 

And the F-135 engine problem from from 'undocumented' Titanium that had 'evolving nano-inclusions'..  Where the stuff comes from is as important as to what it is made into.

In reply to by nmewn

Adolph.H. Being Free Fri, 04/13/2018 - 07:49 Permalink

Russian mentality is different from the self entitled American one. They don't make a lot of fuss about things but when pissed off they would give 1, 2 or even maybe 3 or more warnings. After that you're done. You can't win against them on their land. You're not strong enough. 

This is what is happening to America, and next in line will be Europeans. 

Wait until they stop shipping platinum too. 

----

It's okay not to be a Jew.

In reply to by Being Free

GreatUncle Belrev Fri, 04/13/2018 - 07:42 Permalink

Even more amusing is it not ...

40% Boeing + 60% Airbus = 100% so it is a 100% export product.

Crafty as well looks like they make the parts so you get the whole production cycle for gain.

If I was Russia I would just massively inflate the cost then go and buy all sanctioned goods from China that I need and use the extra cash to pay for it ... or if inflated enough turn a profit.

In reply to by Belrev

HenryHall GreatUncle Fri, 04/13/2018 - 08:41 Permalink

>> 40% Boeing + 60% Airbus = 100% so it is a 100% export product.

No, both China and Russia manufacture aircraft that use Russian manufactured titanium parts.

Titanium is high tech stuff, that's why parts are manufactured in Russia.

Boeing would have no difficulty in sourcing titanium sponge (semi-processed raw material), but that doesn't give them what they need. Boeing can get the titanium parts from other sources including from Lockheed. It is just more time, money and production delays wherein they lose out to competition from Airbus. Money, time, market share, but not any crucial impossibilities.

In reply to by GreatUncle

GreatUncle HenryHall Fri, 04/13/2018 - 12:04 Permalink

As of last year, 40 percent of Russian titanium aircraft parts were sold to Boeing and 60 percent to its European rival Airbus, according to a spokesman for Russia’s Rostec corporation.

As I read this ... 40% of aircraft parts were sold to Boeing and 60% to Airbus - as it is an aircraft part not titanium  then it is 100% of Russian aircraft parts in 2017 are going to the two companies. Also not picking a favorite from the 2! With all the sanctions on Russia and you do not eat aircraft parts blocking them entirely has far less impact on the Russian people but big ramifications for the EU and US.

In reply to by HenryHall

oncemore1 bunkers Fri, 04/13/2018 - 12:28 Permalink

You always have been commies.

You, your jews eg Jacob Schiff, grandpa of Adam Schiff, financed Bronstein ( u migjt know him under the pseudonym Trotzkij), who together with Lenin hew madw the commie revolution in Russia. Ok , Lenin was a UK fag, finanved by Germany.

But you flipped the sides and today you claim to export democracy and human rigjts.

We earthlinhs outside USA, have about it a certain opinion.

In reply to by bunkers

keep the basta… cantscratchfever Fri, 04/13/2018 - 08:11 Permalink

NO. Russia was done  over in the 90s and lost 85% of everything. The USA and UK got in there, poor Yelstin was drunk dying and blackmailed, and the {{oligaths}} carried off everything as planned or baked in the cake from the very beginning... thats what martxism is about.. based on the talmudic end. Yelstin gave Rus to Putin to save and he did it. Changed laws so the oligaths who thought he was a pushover had to runforrit.. uk usa and israel 

In reply to by cantscratchfever

BlindMonkey chestergimli Fri, 04/13/2018 - 09:52 Permalink

I forgot where I read it but someone calculated the real US GDP at 5-10T with the remainder being services, financial and otherwise.

 

17T makes for a great headline number but what does that really buy you?  we know we overpay for healthcare by 400+%.  Drugs and procedures are often 1/5 the cost elsewhere.  What other aspects of the US economy are inflated like this?

In reply to by chestergimli