Japanese rolled titanium makers reached basic agreement for the price in fiscal 2007 starting April after the negotiation with domestic users to increase the price by 30-40%. Domestic 2 sponge titanium makers got around 30% hikes for long term contract of ingot and sponge products, which are materials for rolled products, in the negotiation by end of January. The prices increase widely as last year when the users try to secure the materials even at higher price under worldwide tight supply.Domestic sponge titanium makers of Sumitomo Titanium and Toyo Titanium increased the export price by around 30% for 2007 shipment. The 2 sponge makers apparently increase the domestic long term sponge and ingot price by around 30% for domestic rolled titanium makers as the indicator of export price. The sponge and ingot titanium price doubles in 3 years since 2004 due to very tight supply since 2005. The rolled titanium makers started preliminary price hike talk with the users with the expectation the sponge and ingot price should increase. The users accepted 30-40% hike to secure materials under domestic tight supply of titanium products. The rolled titanium makers apparently filled order book for fiscal 2007 when the demand is firm for water supply, chemical electrolysis, plate heat exchanger and automobile. The demand is also expected to keep firm for airplane, which is the largest titanium using industry.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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