Market Price of Ti Rolled Products Drops Below 4,000 Yen/kg, Japan

Market price of titanium rolled products reached below 4,000 yen per kilogram in Japan due to the continuous market decline. Distributors’ reselling price has plunged for titanium plate and bar since this spring and reached below 4,000 yen during May-June. The market price was higher than 6,000 yen a year earlier, which dropped by about 40%.

The price down accelerated after the announcement by Japanese titanium sponge makers in November 2008 to decrease sponge price for offshore consumers by 10-15%. The market price became below 6,000 yen at the beginning of this year and around 4,500 yen at the end of March. Distributors tried to reduce inventory evaluation loss at the end of March, the end of a fiscal year for most Japanese companies.

Demand for rolled titanium products stays stagnant. Order receipts are sharply decreasing for heat exchangers in plants, even with order cancels. The users hold surplus inventories of rolled titanium products. The market price is impacted by low shipment. Market players forecast the market price declines more.

Another factor is inflow of cheaper imports. According to the trade statistics by Ministry of Finance, Japanese import of titanium products (except for sponge, ingot and scrap) hit record high 116 tonnes in April and the unit price was 3,405 yen per kg.