The short answer is, yes, it certainly could be an allergy or a sensitivity to the titanium or one of the other metals in the alloy such as aluminum or vanadium.
Initially, these "breakouts" are usually diagnosed as skin infections, but if persistent, a metal allergy should be considered.
Titanium and titanium alloys are generally considered to be more biocompatible (i.e. - less likely to cause an allergic reaction) than other materials such as stainless steel (primarily because of the nickel in stainless), but still can cause a reaction.
This is from the Zimmer website (a company that manufactures orthopaedic surgical instruments and implants):
Quote:
Titanium Alloys
Titanium alloys are considered to be biocompatible. They are the most flexible of all orthopaedic alloys. They are also lighter weight than most other orthopaedic alloys. Consisting mostly of titanium, they also contain varying degrees of other metals, such as aluminum and vanadium.
Titanium
Pure titanium may also be used in some implants where high strength is not required. It is used, for example, to make fiber metal, which is a layer of metal fibers bonded to the surface of an implant to allow the bone to grow into the implant, or cement to flow into the implant, for a better grip.
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There was also a very good paper from March 2001 in the Journal of Bone and Joint Surgery that addressed this issue.
http://www.ejbjs.org/cgi/reprint/83/3/428.pdf
Hope this helps!