Strong Heat Exchanger Demand Expands Rolled Titanium Use

Japanese plate heat exchanger demand accelerates to increase lifting the rolled titanium demand. The plate heat exchanger shipment increased by 21.7% to domestic market and by 30.4% to export in 2007 from 2006, according to estimate by Japan Titanium Society. Major heat exchangers increase the order backlog with large lot orders from offshore buyers. With the higher demand, high grade titanium supply could keep tight in 2008. Japan Titanium Society reported rolled titanium shipment was 1,708 tonnes for domestic market and 2,807 tonnes for export in 2007. The shipment increased by more than 10% from 1,500 tonnes and 2,350 tonnes of original estimate as of early 2007. Osaka based major heat exchanger maker, Hisaka Works increased the order backlog. The domestic largest titanium user reported in end January the order receipt increased by 6.3% to 34 billion yen from November report. The firm expects the order backlog will reach 26.682 billion yen at end March 2008 compared with 20.682 billion yen at end March 2007 and 13.747 billion yen at end March 2006. The order backlog increased by around 94% in 2 years. Japanese titanium supply is expected to less tight in 2008 than very tight position in 2007 and before when the users expand the offshore sourcing of titanium materials. However, the high grade titanium supply is likely to keep tight due to strong demand. The supply condition could be much different between commodity grade and high valued products.