Japan’s Toho Revises Aerospace Titanium Demand Forecast Amid Boeing Delays

Toho Titanium Lowers Aerospace Titanium Demand Forecast

Japanese producer Toho Titanium has revised down its titanium demand forecast for aerospace this year. The company cited ongoing supply-chain disruptions caused by delays at US aerospace giant Boeing. These operational setbacks have extended beyond initial expectations, pushing back the titanium sponge demand rebound.

However, Toho’s spokesperson told Argus on August 5 that while demand for aerospace titanium may increase later in 2025, the timeline remains uncertain. This marks a shift from the May forecast, reflecting slower recovery in Boeing’s production schedules and related supply chains.

Impact of Chinese Oversupply and Currency Fluctuations

Toho reported sales of ¥15.3 billion ($104 million) for its titanium metal business in Q1 2025, down 4.1% year-on-year. The drop mainly reflects oversupply from Chinese producers flooding the market with titanium sponge for general industrial use. Chinese exports have surged in response to weak domestic demand.

Although titanium sponge deliveries to foreign aerospace industries remained stable, Toho’s net profit still dropped 40% to ¥840 million, mainly due to the stronger Japanese yen against the US dollar. This currency shift reduced profitability in international sales.

SuperMetalPrice Commentary:

Toho’s revised titanium demand outlook highlights ongoing volatility in aerospace metals markets. Boeing’s delays underscore supply-chain risks, while Chinese overproduction pressures prices and margins. Investors should watch currency trends and Chinese export policies, as these factors will continue shaping titanium market dynamics in 2025.