Posco Holdings (KRX:005490) is mulling scaling down its titanium business, including a complete exit, as its production shrinks to about one-third of 2015 levels amid growing cheaper exports from China, Pulse News reported Wednesday.

The company, Korea's first domestic producer of titanium sheets, maintains that falling profitability has impacted its operations; however, no decision has been finalized yet, the report said.

Meanwhile, the industry observers believe that any change in the company's titanium business strategy may impact Korea's domestic supply chain, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)