Q1 2016 ATI Surcharges Published
AS6279 – What You Need to Know
On October 15, 2015, a new specification called AS6279, “Standard Practice for Production, Distribution, and Procurement of Metal Stock” went into effect. AS6279 adds several new responsibilities related to chain of custody, traceability, certifications, record retention, product substitutions, and dimensional limits.
If you supply or purchase materials to specifications such as AMS 4900, AMS 4901, AMS 4911, AMS 4919, AMS 4928, AMS 4930, AMS 4965, AMS 4967, AMS 4971, AMS 4978, AMS 6930, AMS 6931, AMS 6932, AMS 6936, you are affected. Additional specifications will begin to incorporate AS6279 as they are revised.
AS9100/AS9120 Certification: Perhaps the most significant requirement is that producers and distributors of titanium being sold to the above specifications, must be accredited to AS9100 or AS9120, unless otherwise approved by the cognizant engineering organization.
Definition of “Producer”: AS6279 establishes that any organization can become a “Producer” by coordinating manufacturing operations, even if that organization does not perform any processes in-house. An organization authorizing processes that change material gauge, condition, or specification, is a Producer. Producers are responsible for ensuring that material meets all specification requirements for the new dimension, condition, or specification. Producers are required to identify themselves and provide information about manufactured products to MMPDS (Metallic Materials Properties Development and Standardization), which is used to analyze design allowables for aerospace structural designs.
Product Substitutions: It is not appropriate to substitute product forms without authorization from the cognizant engineering organization. Plate and flat bar may look similar, but the inherent product characteristics are different. Organizations must also ensure the thickness or Short Transverse dimension is not cut to achieve desired thickness, without authorization from the cognizant engineering organization.
Chemical Milling: Chemical milling or pickling shall only be used for alpha case removal or pre-penetrant etch, unless approved by cognizant engineering organization.
Ordering Information: Aside from standard ordering information, purchasers must ensure that any relevant requirements are flowed down from the cognizant engineering organization. Include requirements for grain direction, as well as maximum allowable gauge. When the size being ordered exceeds the range covered by the AMS specification, purchasers must flow down any mechanical property requirements or supplemental tests that must be satisfied.
Free introductory training presentations are available at: http://www.sae.org/servlets/works/committeeHome.do?comtID=TEAAMSMGC
AS6279 is available for purchase through SAE International: http://standards.sae.org/as6279/
Q4 2015 ATI Surcharges Published
Titanium surcharges remain flat from ATI Specialty Materials. 6AL-4V Bar/Plate surcharge remains at $5.10/lb, unchanged from Q3 2015. Surcharges are currently released on a quarterly basis.
Source: http://partnerlink.allvac.com/rmi/faces/rmiIndex?_adf.ctrl-state=jeocn6m62_11
Understanding MIL/AMS-T-9046 Supersession
In the early 1990’s, US Secretary of Defense, William J. Perry, was at the forefront of military specification reform. Perry encouraged the military to use Non-Government Standards and do away with outdated military specifications, asserting that doing so would reduce government oversight and lower costs.
In September 1999, MIL-T-9046J was cancelled, and superseded by SAE AMS-T-9046. AMS-T-9046 was a word-for-word translation of MIL-T-9046J Amendment 2, with minor editorial and format changes. Unfortunately, AMS-T-9046 still covered nearly 20 grades of titanium and multiple conditions, rendering it somewhat complicated for users. In May 2006, AMS-T-9046 was cancelled as well, referring future procurement for each alloy and condition to a separate AMS specification.
If your contract requires use of the superseding specification, refer to the table below pointing to the Superseding Specifications for several material designations within AMS-T-9046.
Still not sure which grade or specification you need? Give us a call at 888-772-8984 or email sales@performancetitanium.com and we can help.
Understanding Specification MIL-T-9046 – Which Grade Do You Really Need?
Back in 1955, specification MIL-T-9046 was born, covering Titanium Sheet, Strip, and Plate. This specification tends to cause a lot of confusion for clients because it covers nearly 20 different types of titanium, and several conditions within some of the alloys. On top of that, during several revisions of the spec, a new alloy designation code was given to each type. We hope the following table and discussion helps to ensure procurement of the right type of titanium for your requirements.
The above table appears in the back of MIL-T-9046J (available for free download at http://assist.dla.mil), but we like our version better. *If you agree, you are welcome to email us at sales@performancetitanium.com and we will gladly share a copy.
Back to the good stuff. Specification MIL-T-9046 was cancelled in September 1999. Its last active revision was “J”, and the code designations for that revision are featured in the far right column of the above table. In the MIL-T-9046 cancellation notice, future acquisition was directed to SAE AMS-T-9046, which is also now cancelled. If your contract requires use of the superseding specification, refer to this discussion for help.
Since the MIL-T-9046 specification has been used for decades, often times a drawing will call out an old code such as “MIL-T-9046 Type 3 Comp C”. Using the table above, we can determine that “Type 3 Comp C” means the requirement is for 6Al-4V, and the drawing is pulling from an older revision of the specification, either Revision F or H. These days, it is unusual to procure material whose certifications will still use older revisions. Certifications would most likely display this requirement as “MIL-T-9046J AB-1”. Check with your Sales Rep if you have questions.
The code designations for Commercially Pure grades of titanium were established in the most unfortunate fashion. Under MIL-T-9046 Revision J, Commercially Pure Grade 1 titanium would now be referred to as “CP-4”, Commercially Pure Grade 2 titanium became “CP-3”, Commercially Pure Grade 3 titanium became “CP-2” and Commercially Pure Grade 4 titanium became “CP-1”. If you are unsure which grade you require, please contact us for help. Although the names sound similar, the differences between the grades are significant.
Berkshire Hathaway to buy Precision Castparts for…. $37,200,000,000
This week, Berkshire Hathaway revealed plans to acquire Precision Castparts Corp (PCC) for a whopping $37.2 billion, amounting to Warren Buffett’s largest deal in history. PCC is a Portland, Oregon-based aerospace supplier, manufacturing various complex structural airframe components and other parts for the aerospace and oil and gas markets.
PCC’s organization is comprised of companies dealing in Investment Cast Products, Airframe Products, and Forged Products, including Wyman-Gordon, Special Metals Corp, and Titanium Metals Corp (TIMET). PCC famously purchased TIMET, a major domestic source of titanium mill products, in 2013 for $2.9 billion.
This deal comes off the heels of the $1.5 billion consolidation of Alcoa and Pittsburgh-based RTI International Metals, a global manufacturer of titanium specialty metal products.
Check out highlights from the press release below, or view the full press release here.
Berkshire Hathaway Inc. to Acquire Precision Castparts Corp. for $235 Per Share in Cash
PCC will remain headquartered in Portland, Ore. as a wholly owned subsidiary of Berkshire Hathaway
OMAHA, Neb. & PORTLAND, Ore. – Aug. 10, 2015 – The boards of directors of Berkshire Hathaway Inc. (NYSE: BRK.A; BRK.B) and Precision Castparts Corp. (“PCC”) (NYSE: PCP) have unanimously approved a definitive agreement for Berkshire Hathaway to acquire, for $235 per share in cash, all outstanding PCC shares. The transaction is valued at approximately $37.2 billion, including outstanding PCC net debt.
“I’ve admired PCC’s operation for a long time. For good reasons, it is the supplier of choice for the world’s aerospace industry, one of the largest sources of American exports. Berkshire’s Board of Directors is proud that PCC will be joining Berkshire,” said Warren E. Buffett, Berkshire Hathaway chairman and chief executive officer.
“We are very pleased to be joining forces with Berkshire Hathaway,” said Mark Donegan, PCC’s chairman and chief executive officer. “We see a unique alignment between Warren’s management and investment philosophy and how we manage PCC for the long-term. We believe that as part of Berkshire Hathaway, PCC will be exceptionally well-positioned to support our customers’ needs into the future. This transaction offers compelling and immediate value for our shareholders, and allows PCC’s employees to continue to operate in the same manner that has generated many years of exceptional service and performance to our customers.”
The transaction requires approval by a majority of PCC’s outstanding shares. Closing is expected to occur during the first quarter of calendar 2016, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Act and competition clearance in certain foreign jurisdictions.
PCC will continue to do business around the world under the Precision Castparts name and maintain its headquarters in Portland, Oregon.
Slight drop in Q2 ATI Surcharge
The second quarter is upon us, and ATI Specialty Materials has published new titanium surcharges. However, nothing to write home about.
ATI’s RMS (raw material surcharge) is published quarterly, and fluctuates based on critical elements used in the melting of products.
ATI 6AL-4V and 6AL-4V ELI Bar and Plate Surcharges dropped to $5.15/lb, down a whopping 3 cents from the prior quarter.
CP Grades 2 and 4 remained stable at $3.70/lb for Bar and Plate.
ATI Surcharge Holds Steady
The first of the year brought a newly published quarterly titanium surcharge from ATI, with no significant changes.
The 6AL-4V titanium bar and flat products surcharges dropped a penny from last quarter, to $5.18/lb. The 6AL-4V ELI surcharge followed suit, listing at $5.18/lb.
Commercially Pure Grades 2 and 4 held firm from fourth quarter 2014, at $3.70/lb for bar and flat products.
Though surcharges remain flat, lead times have greatly extended at various domestic titanium mills. Small diameter products may require 30+ weeks lead time, while larger diameters and plates are running 14-22 weeks.
ATI Raises Titanium Surcharge for 6AL-4V
ATI Allvac has marginally increased its raw material surcharge for 6AL-4V titanium products.
Surcharge changes are currently released on a quarterly basis. The fourth quarter surcharge on 6AL-4V titanium bar products is $5.19/lb, up from $4.98/lb for the third quarter. The surcharge has been creeping upwards since the second quarter of 2014, when it charted its first increase in two years.
The Commercially Pure Grade 2 surcharge remained flat at $3.70/lb for bar and flat products.