Japan Rolled Titanium Makers to Seek Price Hike for F2008

Japanese titanium rolling makers try to increase the selling price for domestic buyers for April 2008 after the price hike in April 2007. They try to pass potential higher cost price of sponge titanium when sponge makers already increased the price by around 10% for offshore buyers for 2008 shipment and try to increase the price for Japanese buyers. With the additional hike, the rolled products market price could increase to more than 6,500 yen per kilogram. Titanium demand increases for airplane parts, chemical and water desalination plants and automobile and shipbuilding parts. With the higher demand, Japanese sponge titanium makers increased the price by 30% for fiscal 2007 starting April after 20% hike in fiscal 2006 and 30% hike in fiscal 2005. Osaka Titanium technologies launches new plant in January 2009 for first phase with annual 8,000 tonnes of output capacity and in July 2009 for second phase with 4,000 tonnes of capacity. Toho Titanium also starts operation of Wakamatsu plant, Fukuoka with 6,000 tonnes of capacity. The supply is expected to keep tight for 2008 before the supply increases in late 2009.