Toho Titanium Reduces Sponge Export Price by 15% for 2009

Toho Titanium reduced the export price of sponge titanium by around 15% for 2009 shipment from 2008. The price hits the first drop in 5 years under worldwide slower demand under slower economy.

Titanium demand slowed down after major airplane maker’s strike delayed the delivery of new airplane. The demand also decreases for other industrial applications. The oversupply condition impacted on the price move when the supply capacity was expanded by sponge titanium makers at home and abroad.

The price increased for 4 years in a row through 2008 including 10% up in 2008, 30% up in 2007 and 2005 and 20% up in 2006. The demand was strong under booming development of titanium consuming plants including chemical and power plants in China and seawater desalination plant in Middle East. Demand of airplane, which is the largest application of titanium, increased due to more travelers in developing countries.