Osaka Titanium lowers run rate as domestic demand softens

Osaka Titanium

Osaka Titanium lowers run rate to align output with weaker home-market demand. Osaka Titanium lowers run rate by up to 10pc from April. Meanwhile, Osaka Titanium lowers run rate while preserving export momentum to aerospace customers.

Exports to aerospace steady as local demand slips

Osaka Titanium trimmed titanium sponge operations because Japan’s general industry slowed. Clients entered inventory adjustment, reducing orders for heat exchangers. As a result, domestic titanium sales fell about 45pc to ¥1.4bn in April–June. China’s prolonged slowdown further constrained Japanese machinery exports. The Amagasaki plant’s nameplate capacity remains 50,000 t/yr.

Airbus and MRO needs underpin sponge shipments

Export demand stayed firm on Airbus programs and engine MRO work. Quarterly titanium sponge exports rose 15.3pc year on year to ¥90bn. Therefore, international aerospace offset softness in Japan’s industrial sector. The company previously averaged a 90pc facility run rate in April–September 2024. Current operations run up to 10pc below typical levels.

Sponge production will likely stay lower through March 2026. However, management expects a recovery to full rates as early as autumn. Deferred orders from aerospace could tighten titanium sponge availability. Consequently, buyers should watch lead times, premia, and alloy surcharges. Supply discipline may stabilize prices despite broader manufacturing headwinds.

The Metalnomist Commentary

Japan’s titanium cycle is increasingly aerospace-led. If Airbus build rates and MRO visits hold, export pull should outrun domestic softness. Watch inventory normalization in heat exchanger supply chains for the next inflection.