Titanium Sponge Supply for Steel Making Eases

Supply and demand balance is easing for titanium sponge applied to steel making. Steel makers’ sponge consumption is decreasing to reflect slowdown of steel makers’ output recovery and increasing supply of titanium scrap, another additive material for steel making. The international market price is lowering under easier supply and demand balance.

Stainless steel or special steel makers consume titanium sponge as additive, the grade of which is lower than titanium sponge for rolled titanium products. Titanium scrap is also used as additive for steel making. Steel makers had raised sponge utilization since mid 2009 because scrap generation had decreased due to low demand for rolled titanium products.

However, sponge procurement by Japanese major steel makers slowed down in recent several months when steel makers’ productions leveled off. Meanwhile, one rare metal scrap dealer points out some titanium re-rollers are recently releasing their surplus scrap inventory to the market. As a result, scrap supply is gradually easing.

In addition, Chinese titanium makers are moving into capacity expansions to prepare for demand growth in 2011. It is said that many makers haven’t obtained users’ certifications for high grade applications such as airplane parts and heat exchangers. Thus increased sponge supply may be distributed to steel making usage.

According to Reuters’ survey, the market price of titanium sponge for steel making (99.6% purity) is presently US$ 7.5-9.0 per kilogram in Europe, lower by about 9% from recent high US$ 8.5-9.7 in mid September.