Japan Titanium Re-rollers and Users Agree in 10% Price Hike for F2011

Japanese titanium re-rollers and rolled titanium product users almost concluded the price negotiations for fiscal 2011 shipment (April 2011-March 2012), agreeing in price hike by average 10% from fiscal 2010. Titanium re-rollers had previously agreed with Japanese 2 titanium sponge makers in price hike of titanium sponge and ingot by about 10% for long-term contracts in 2011. Sponge and ingot price upsurges are reflected on selling prices of titanium rolled products in and after April.

Some of titanium re-rollers are likely to raise the selling price by more than 20% for fiscal 2011 shipment while the average hike range is around 10%.

Japanese 2 titanium sponge makers, Osaka Titanium Technologies and Toho Titanium raised their sponge export price by around 10% for 2011 shipment. Titanium sponge export prices were raised for the first time since 2008. Sponge export price is regarded as an indicator for long-term price negotiations between Japanese 2 sponge makers and domestic titanium re-rollers. Thus titanium sponge and ingot prices were raised by around 10% for 2011.

Titanium re-rollers started price hike offer against rolled titanium product users before conclusion of sponge and ingot price negotiation since material prices certainly seemed to surge. Titanium rolled product users approved price hike offer by average 10%, the same hike range as titanium sponge price.

Japanese shipment of rolled titanium products totaled 13,783 tonnes in 2010 including export, increasing by 15% from the previous year. The shipment represented first year-to-year plus since 2008 though the volume didn’t reach the pre-shock level.