Osaka Titanium’s Sales Dip as Demand Stabilizes After Last Year’s Surge

Osaka Titanium Technologies reported a significant decline in sales during the April-June period as demand for titanium sponge normalized following an exceptional surge in the previous year. The Japanese producer's titanium business segment saw sales drop by 16.8% year-over-year, totaling ¥11.2 billion ($76.2 million).

The company attributed the decline primarily to a reduction in orders from clients who had previously rushed to secure titanium sponge supplies. This rush was driven by the aviation industry's move to avoid Russian products in response to the Ukraine war, leading to an "exponential" increase in procurement during the same period in 2023. However, this demand has now plateaued, with orders reflecting "real demand" during the April-June timeframe, according to an Osaka Titanium spokesperson.

Titanium sponge exports, which represent 72% of the company’s total titanium sales, also experienced a downturn, decreasing by 7.2% to ¥8 billion.

Despite the lower sales, Osaka Titanium’s profit soared by 69.7% year-over-year to ¥2.9 billion. This profit boost was largely due to price increases of 10% for export and 20% for domestic deliveries, coupled with a weaker Japanese yen, which enhanced the company's price competitiveness in international markets.

Osaka Titanium had anticipated this decline, having forecasted lower demand for the April-September period with an expected recovery in the second half of the fiscal year ending March 31, 2025.