AM Insight: Demand for ferrotitanium to be limited
2010-07-20 09:35:20 【Print】
BEIJING (Asian Metal) 20 Jul 10 – As steel market keeps inactive with dropping price, ferrotitanium market has been slow with few buying activities from April, what’s more, it is still difficult for the market to make up lost ground in August due to various economic factors.
Domestic steel price had slid down since late April, it is reported that it moves down to the bottom line of cost with dropping output. In this case, the demand for ferrotitanium from steel mills will go down greatly according to the fierce situation as most producers of ferrotitanium reduced the output while even some producers stopped producing and turned to other production these days. Furthermore, ferrotitanium price dropped accordingly with the mainstream price of ferrotitanium 30% down to around RMB10,000/t, attributing slow purchase.
Meanwhile, on account of big difference between domestic and international prices, export market is quiet. International demand for ferrotitanium is one with the content of 70% of titanium while 30% to 40% of titanium content is from domestic consumption, so there is no impetus for Chinese ferrotitanium export to improve.
A producer in Liaoning reported that the company only produces with half capacity of ferrotitanium, what’s more, most of them are sold in small pieces because of dropping demand from steel mills. However, he believes that the price has little chance to move down further for the limited space away from cost line.
As to the international market, the demand of ferrotitanium also went down due to various economic factors and European sovereign debt. And the international steel market becomes slow with oversupply driven by quick development of steel in Japan and Europe. Therefore, it also meets slow demand for ferrotitanium and dropping price, with the mainstream price of ferrotitanium 70% down from USD7.0/kg Ti to USD6.0-6.3/kg Ti since May.
Domestic steel price had slid down since late April, it is reported that it moves down to the bottom line of cost with dropping output. In this case, the demand for ferrotitanium from steel mills will go down greatly according to the fierce situation as most producers of ferrotitanium reduced the output while even some producers stopped producing and turned to other production these days. Furthermore, ferrotitanium price dropped accordingly with the mainstream price of ferrotitanium 30% down to around RMB10,000/t, attributing slow purchase.
Meanwhile, on account of big difference between domestic and international prices, export market is quiet. International demand for ferrotitanium is one with the content of 70% of titanium while 30% to 40% of titanium content is from domestic consumption, so there is no impetus for Chinese ferrotitanium export to improve.
A producer in Liaoning reported that the company only produces with half capacity of ferrotitanium, what’s more, most of them are sold in small pieces because of dropping demand from steel mills. However, he believes that the price has little chance to move down further for the limited space away from cost line.
As to the international market, the demand of ferrotitanium also went down due to various economic factors and European sovereign debt. And the international steel market becomes slow with oversupply driven by quick development of steel in Japan and Europe. Therefore, it also meets slow demand for ferrotitanium and dropping price, with the mainstream price of ferrotitanium 70% down from USD7.0/kg Ti to USD6.0-6.3/kg Ti since May.
