Osaka Titanium Technologies to Cut Sponge Export Price by 15% for 2010

Osaka Titanium Technologies are concluding the price negotiation of sponge titanium with offshore rolled titanium makers to reduce the price by around 15% for 2010 shipment from 2009. The price decreases for 2 years in a row after the price decreased by 10-15% in 2009 due to slow airplane demand. The price cut would impact on price negotiation with domestic rolled titanium makers in spring 2010.

The president Shozo Nishizawa said the price depends on grade, products mix and each buyer and the decrease range for 2010 is from just over 10% to near 20% from 2009 level.

The price was expected to decrease for 2010 more than 2009 down when rolled titanium spot market price decreased through the year. However, higher cost for titanium ore and energy limited the price down.

The firm expanded new capacity for the sponge titanium in October 2008 to increase the annual output capacity from 24,000 tonnes to 32,000 tonnes. However, the operation is at monthly less than 1,200 tonnes recently after the firm expanded the production cut to 45% of the capacity in July under very slow demand.

Boeing announced the firm completed the ground test for new B787. The firm could start the first flight test in the year and could deliver the new model as early as end of 2010. The new model release could lift the titanium demand while the general titanium demand is still uncertain for heat exchangers.