Ti Scrap Market Price Strengthens in Japan

Titanium scrap market price is strengthening in Japan. The demand is stable from steel makers. Meanwhile, low grade titanium sponge supply is globally tightening and alternate demand for titanium scrap is increasing. Scrap generation maintains low in Japan. Then dealers are aggressive to procure titanium scrap and the market price is surging.

Domestic market price has surged by around 30% during several months. Steel makers show healthy demand for titanium scrap to add the scrap to high grade steels and special steels. Steel consumption keeps strong in emerging countries. However, sponge supply is tight for steel makers. The main reason is that sponge supply is allocated to titanium re-rollers those who manufacture airplane parts when airplane market has recovered.

Low grade sponge supply had been surplus against the global demand before Lehman Shock since a lot of titanium sponge makers appeared in China. Currently weak sponge makers were optimized in China along the government’s policy and the supply and demand balance were relatively improved. Then alternate demand for titanium scrap is increasing.