What ATI Inc. told the SEC could break it.

ATI's specialty alloys consume nickel, titanium sponge, zirconium, ferrochromium, molybdenum, cobalt, niobium, vanadium, hafnium and scrap; volatile raw-material prices and long product lead times expose it to costs not always recovered via surcharge/index pricing.

“The principal raw materials we use in the production of our specialty materials are scrap (including iron-, nickel-, chromium-, titanium-, and molybdenum-bearing scrap), nickel, titanium sponge, zirconium sand and sponge, ferrochromium, ferrosilicon, molybdenum and molybdenum alloys, manganese and manganese alloys, cobalt, niobium, vanadium, hafnium and other alloying materials.”

ATI sources some critical materials from China, which has imposed and may further impose export controls that could limit or significantly delay access, forcing it to find alternative sources it may not secure in time.

“We source some of these materials from China, which has imposed, and may in the future continue to impose, export controls that could limit or significantly delay our access to such materials and could compel us to identify alternative sources, which we may not be able to do in a timely fashion or at all.”

ATI relies on third parties for critical melting/processing supplies — graphite electrodes and industrial gases (helium, argon) — whose price and availability are volatile and at times limited.

“We rely on third parties for certain supplies, such as graphite electrodes and industrial gases including helium and argon, that are critical to the manufacture of our products. Purchase prices and availability of these critical items are subject to volatility.”