JPN Dealers Decrease Ti Product Reselling Price by 5%

Japanese dealers’ reselling price of titanium rolled products is slightly decreasing. The reselling price seems declining by 5% from the record high marked at the beginning of this year. Dealers are cutting the reselling price within the brokerage range and improving the inventory turnover with intentions to weaken the supply shortage mood in the market and to recover titanium consumers, those who are shifting to other materials.Demand for titanium rolled products maintains strong from plate-type heat exchangers equipped in atomic power plants, LNG plants and petrochemical plants, and seawater desalination plants. Japanese titanium fabricators agreed with large-lot consumers in price hike by 5% for 2008 compared with 2007 since the fabricators approved price hike of titanium sponge by 10%.On the other hand, domestic supply of titanium materials is being easier with import increase from China, Kazakhstan and Ukraine. Japanese import of titanium sponge and ingot is average 900 tonnes per month this year, increasing from 500 tonnes in 2007, according to the trade statistics by Ministry of Finance.Import of titanium rolled products is also increasing from China. There seem Chinese products with cheaper prices in the market for low grade products such as thick plate, bar and wire materials.In these conditions, domestic dealers are decreasing the reselling price of titanium rolled products by 5%, the level as low as 2007. They intend to recover titanium users in private sectors those who shifted to other materials due to supply shortage of titanium products in recent years.The market price would not down widely with a little volume and regulated applications of imported titanium products. However, a source of Japanese titanium fabricator said Japanese market price is too expensive compared with overseas products. The market price might continue declining.