Network Metals LLC

One of our contacts in China yesterday gave us some information about titanium production and consumption in China worth noting. Titanium production out of China in April was up 40% year over year to 5,200 tons, but demand for our suppliers in Shaanxi Province has dropped dramatically. Over the past three months one supplier has seen about 50% of all usual orders cancelled. They also told us that in their area of Shaanxi, about half of all existing titanium factories have been idled due to the weak demand, and that at the moment they are just barely above water. This paints the actual demand picture well in the face of higher production, and provides more evidence that real recovery is not yet imminent.