Wales U20 20-34 Fiji U20
Wales Under-20 can finish seventh at best at the IRB Junior World Championship after Fiji beat them in a fifth-place semi-final play-off.
Richard Webster's side face Ireland U20 on Sunday for seventh after they lost 57-15 to South Africa U20.
Fiji's tries came from Metuisela Talebula (2), Eliki Sicinilawa. Wales' try-scorers in Italy were Dale Ford, Rhodri Jones and Steve Shingler.
Josateki Lalagavesi kicked 19 points to Wales fly-half Matthew Morgan's five.
Welsh Rugby Union head of rugby Joe Lydon has already announced a review into Wales' performance at the tournament and the structure that underpins the nation's age-grade rugby.
That decision came in the wake of the 92-0 drubbing suffered in Pool A by New Zealand.
Fiji won only once at the 2011 group stage, a 36-18 Pool B win over Tonga. That was the islanders' third win in 12 games at the pool stages in four tournaments stretching back to 2008.
Fiji's previous highest finish at a tournament came in 2010 when they ended eighth after Wales beat them 39-15 to claim seventh spot.
In 2008 Fiji were 14th and in 2009 12th.
Wales' top ranking came in 2008 when they were fourth. In 2009 Wales finished sixth and a year later seventh.
Wales team manager Mark Taylor said: "Tonight's performance was hugely disappointing. We totally underperformed and there are no excuses.
"We lost our shape very quickly, we weren't direct enough in our play and we didn't follow the game plan.
"We kicked away too much ball, we made handling errors and basically enabled Fiji to score points through our mistakes. We have to look hard at ourselves as a group after this performance."
Taylor and Webster will now attempt to ensure they overcome an Irish U20 team coached by their former Swansea boss Mike Ruddock, who went on to guide Wales to the 2005 Grand Slam in which Taylor played.
Wales: Ross Jones (Ospreys/Bridgend); Liam Williams (Llanelli), Dale Ford (Scarlets/Llanelli), Lewis Robling (Dragons/Newport), Eli Walker (Ospreys/Swansea); Matthew Morgan (Ospreys/Swansea), Lewis Jones (Blues/Pontypridd), Rhodri Jones (Scarlets/Llanelli), Jamie Sollis (Dragons/Cross Keys), Will Griff John (Blues/Pontypridd), Macauley Cook (capt, Blues/Cardiff), Cory Hill (Blues/Pontypridd), Edward Siggery (London Irish), Luke Hamilton (Blues/Glamorgan Wanderers), Ben Thomas (Ospreys/Bridgend).
Replacements: Lewis Smout (Blues/Pontypridd), Will Taylor (Ospreys/Swansea), Owen Sheppeard (Pontypridd), Thomas Young (Blues/Cardiff), Jonathan Evans (Dragons/Newport); Steve Shingler (London Irish), Rheon James (Scarlets/Carmarthen Quins).