Higher Steel Demand Lifts Sponge Ti, FeTi Price

Market price of low grade sponge titanium and ferrotitanium increases recently for steel additives. The international sponge titanium spot price increased to three times of the bottom in June 2009. The supply got tighter when the steel demand recovers while the sponge titanium makers reduced the production since first half of 2009. The titanium price for steel industry is expected to keep high when the sponge makers keep production cut due to slow airplane demand.

International sponge titanium spot price exceeded US$ 8 per kilogram recently. A rare metal trader said some transaction is more than US$ 9. Ferrotitanium market price reaches near US$ 8. The price was less than US$ 3 both for sponge titanium and ferrotitanium in June 2009.

Titanium is used in steel making operation as deoxidizing agent. Titanium is also used to improve the steel property for high tensile steel and stainless. Steel makers use low grade titanium, ferrotitanium and titanium scrap in the steel making operation. Japanese raw steel output could recover 100 million tonnes in fiscal 2010 starting April due to higher demand for automobile and export.