
Japanese titanium producers reported increased profits in the three fiscal quarters ending December 31, 2024. Strong aerospace demand fueled the surge. However, inventory adjustments are beginning to impact deliveries.
Osaka Titanium Technologies Benefits from Weaker Yen
Osaka Titanium Technologies posted an operating profit of ¥8.4bn ($54.9mn) for its titanium business. This profit resulted partly from a weaker Japanese yen, enhancing price competitiveness in foreign markets. Total titanium business sales fell by 3.8% year-on-year, reaching around ¥38bn. Titanium sponge exports, mainly for aviation, rose by 2.7% to ¥26.9bn. Exports accounted for 71% of total titanium sales. Export growth slowed to 2.7% as clients completed restocking earlier. Orders in April-December 2024 were limited to current demand. Domestic titanium sponge sales fell by 16.8% to ¥11bn, due to lower demand and inventory adjustments. SuperMetalPrice notes that the weaker yen played a significant role.
Toho Titanium’s Profit Doubles, But Faces Domestic Challenges
Toho Titanium’s titanium metal business operating profit nearly doubled to ¥5bn. This increase was also driven by the weaker yen. Total titanium metal sales rose by 16.4% to ¥49bn. Firm titanium sponge demand from foreign aerospace customers contributed. Exports accounted for 65% of total titanium metal sales. Toho revised its titanium metal sales forecast downward to ¥65.2bn. This revision reflects lower than expected titanium ingot sales in Japan. Slow growth in China’s economy dampened domestic demand. However, export sales forecasts remain unchanged due to strong aerospace demand. Inventory adjustments are partially impacting purchasing appetite.
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