Japan Ti Makers to Lower Domestic Ingot and Sponge Price for F2009

Osaka Titanium Technologies and Toho Titanium plan to lower their titanium ingot and titanium sponge selling price for fiscal 2009 (Apr09-Mar10) by 10-15% against Japanese large consumers compared with fiscal 2008. The selling price for domestic customers would represent the first year-on-year decrease in recent 5 years. Titanium manufacturers are in inventory adjustment phase along the sharp demand decline with economy recession.

Osaka Titanium Technologies plans to lower the selling price by around 10% in fiscal 2009 from fiscal 2008 while Toho Titanium by about 15%. Both companies will decrease the export price for fiscal 2009 shipment and adjust the domestic selling price.

Titanium demand has rapidly declined along economy downturn since autumn 2008. Many construction projects of chemical plant are suspended or postponed. The demand has also weakened from airplanes and consumer appliances when air plane construction and delivery are delayed at a major plane maker.

Titanium manufacturers are adjusting their inventory with the demand decline. As a result, supply and demand balance of titanium ingot and sponge is loosing. The selling price may change within fiscal 2009 along the demand situation.