The price of natural rutile which contains large amounts of titanium oxide all at once trebles in price. Uncertainty in the importation of the raw material ores which determine welding performance.

The import price of natural ores such as rutile and leucoxene which contain large amounts, over 90%, of titanium oxide (TiO2) a major component in welding material, has been increasing since last year. An unusual situation has developed whereby the price has soared to 3 times that of last year. The method of deciding the price of ores has changed over from yearly contracts to quarterly contracts. If hindrances arise in negotiations setting the price for the first quarter of this year there is concern that it will not be possible to get hold of the ores. The price has been hovering at a very high level.

In China the demand has been rising for paint and ink so that a shortage of titanium oxide has developed. The currently soaring price was touched off because global producers such as DuPont required raw material ores such as rutile. Right now there is no stopping the skyrocketing price. Such drastic measures as getting hold of cheap ores or the development of alternative raw material ores are not really all that possible at this point. According to people in the titanium industry, the price of natural rutile increased from the $700-800 a ton of one year ago to the current $2,000 a ton. All types of products such as coated arc welding rod, flux welding wire, and flux material used for submerged arc welding which use titanium oxide as a raw material have been greatly affected. This has caused the problem of the sharply rising prices of resources to afflict markets around the globe.