Osaka Titanium Cuts 2009 Sponge Titanium Export Price by 10%

Osaka Titanium Technologies agreed with overseas rolled titanium makers to decrease the titanium sponge price by 10% for shipment in 2009 from a year ago, announced on Thursday. The firm reduced the export price for the first time since 2005. The titanium sponge price negotiation with domestic rolling makers for shipment 2009 apparently decrease to agreement the same level as overseas. Toho Titanium already agreed 15% price cut for 2009 shipment with overseas rolled titanium makers.

Sponge titanium demand turned into downward in fall 2008 and it is decreasing when Boeing, USA delays the new airplane B787 delivery 2 years behind of original schedule and plant building activity slows due to the recession.

Osaka Titanium Technologies reduced the titanium sponge production by 10% in September-December 2008 and cut by 30% for January-March 2009 against operation capacity. The firm determined to postpone 2 years the expansion to increase the sponge titanium production capacity by 9,000 tonnes per year, originally planned to launch in 2009.