Japan Titanium Sponge Export to Show Slight Surge in 2011

Japanese titanium sponge export price is likely to surge for 2011 shipment after continuous price down for 3 years. However, the increase range is estimated at one digit and even narrower than the past price hike by maximum 30%.

Japanese titanium sponge export price increased by 30% for 2005 shipment from the previous year and showed 10-30% year-on-year increase. In 2009, the price downed by 10-15% and by 15% in 2010.

The latest price hike is based on demand recovery. However, Japanese titanium maker says the demand recovered in some fields while not strongly in other fields. In addition, titanium sponge makers have recently expanded their output capacity. Consequently, current supply and demand balance is not as tight as in the past.

Meanwhile, production costs are increasing at sponge makers. Japanese titanium maker said rutile ore price has upped by 20% at least on a year-on-year basis. Sponge price hike is not sufficient to cover material cost up.