High-Purity Chromium Metal Supply Issues for Gas-Turbine Superalloys (1995) / Chapter Skim
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6 POTENTIAL ECONOMIC SCENARIOS FOR THE U.S. SUPPLY OF CHROMIUM METAL AND THE ROLE OF THE NATIONAL DEFENSE STOCKPILE
6 POTENTIAL ECONOMIC SCENARIOS FOR THE U.S. SUPPLY OF CHROMIUM METAL AND THE ROLE OF THE NATIONAL DEFENSE STOCKPILE
Pages 51-57
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From page 51... ...
FREE TRADE VERSUS NATIONAL SECURITY Since high-purity chromium metal is an essential ingredient in the production of both military and civilian jet engines, the committee first had to address the general question of how to balance trade policy with national security issues. It is widely agreed among economists that mutual loosening of trade restrictions among countries raises standards of living among all of them, although possibly in different degrees in different countries.
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From page 52... ...
NATIONAL DEFENSE STOCKPILE The National Defense Stockpile is maintained by the Defense Logistics Agency to provide the United States with a supply of strategic and critical raw materials in the event of a national emergency. By law these materials can only be used in the interest of national security and cannot be used for economic purposes.
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From page 53... ...
The most recent report on requirements published in 1993, requires an inventory of 24,344 metric tons of chromium metal. The stockpile currently retains 7,700 metric tons of material, of which the National Defense Stockpile technical staff estimates that between 3,500 and 4,500 metric tons is suitable for aerospace applications.
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From page 54... ...
As stated in Chapter 1, there are no aluminother~c chromium-metal production plants currently extant ~ the United States, but existing alumino~ermic production plants that produce other high-puritr metals could produce chromium metal if required. Also, since the aluminothermic process is not as capitalequipment intensive as the electrolytic process, the construction of new facilities appears to be a minor factor should the need arise.
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From page 55... ...
Prices would rise, providing strong incentives to expand existing sources, to qualify Russian material quickly, and to develop new sources as required. The two predominant differences between the first and second scenarios would be that Elkem customers would be forced to buy high-purity chromium metal from foreign suppliers and that a major vacuum-degassing facility would be lost.
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From page 56... ...
Also, such efforts to sustain uncompetitive domestic production undermine the leadership role the United States should take in promoting international trade. Scenario 3: Loss of Foreign Supply This scenario, presumably the worst-case scenario, assumes Me closure of domestic production followed by a surge in domestic demand for high-purity
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From page 57... ...
As stated previously, it is technically feasible to bring new aluminothermic and degassing facilities into operation within 24 months, if necessary. 17zas the existing inventory of highpurity chromium metal in the National Defense Stockpile could currently provide for most domestic requirements, including all military am essential civilian needs, while new aluminothermic and degassing facilities were constructed.
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