Impact of Tariffs and Trade Policy on Market Dynamics
Tariffs have affected the consumer segment, causing customers to delay restocking, but July saw large orders as inventories normalized.
Titan believes fair trade policies will benefit long-term competitiveness, citing past wins against unfair import practices.
The company is positioned to benefit from tariffs on imports due to its U.S.-based production and global footprint.
Progress in international trade agreements, including the Japan trade deal, is viewed positively, though tariffs and trade tensions remain key uncertainties.
Impact of Steel Tariffs and Import Valuation Ambiguities
The company is actively working with the Department of Commerce to clarify the valuation of steel imports under Section 232 tariffs, which has caused significant uncertainty.
Management highlighted that some importers report steel values equal to wire rod or scrap, potentially undermining tariff objectives.
The ambiguity in tariff application could lead to retroactive adjustments and possible customs violations, adding operational risk.
Despite the tariff complexities, Insteel continues offshore wire rod imports to support production, passing higher costs to customers.
The increased tariffs on steel are expected to influence raw material costs and import strategies, with potential long-term impacts on supply chain stability.
Strategic Long-Term Contract Wins with Boeing and Airbus
ATI signed a new long-term guaranteed volume agreement with Boeing for airframe products, including titanium alloy sheet from Pageland, SC, validating ATI as a strategic supplier.
Expanded agreement with Airbus now positions ATI as Airbus' top titanium flat rolled and long products supplier, with increased customer share and long-term commitments.
These contracts include volume-based minimums, scope expansion, and pricing terms that allow for inflation and cost pass-through, supporting revenue growth and margin expansion.
Dafinchi