Imports Surge Amid Tight Domestic Supply
The U.S. titanium scrap market experienced a notable increase in imports during Q3 2024, driven by a tightening of domestic supply and changes in global trade patterns. U.S. customs data shows that titanium scrap imports rose by 8.8% year-over-year, totaling 7,484 metric tonnes (t). This marks the highest quarterly total since Q2 2019 and highlights the growing reliance on foreign titanium scrap. Domestic generation rates decline, prompting increased reliance on imports. Furthermore, the surge in imports indicates a shift in sourcing strategies. U.S. merchants adapt to fluctuating titanium scrap availability and pricing.
Shifts in Sourcing: The Rise of Emerging Suppliers
The increase in titanium scrap imports is attributed to a rise in shipments from emerging suppliers. Imports from the UK climbed 36% to 1,386t, compensating for declines from other traditional sources like Germany (down 5%) and Japan (down 20%). At the same time, new suppliers, including Singapore, Italy, South Korea, Mexico, and France, experienced double-digit percentage increases in shipments to the U.S. These shifts reflect a broader adjustment in the global titanium scrap supply chain. U.S. buyers diversify their sources to meet growing demand.
Exports Soar as Global Market Margins Improve
On the export side, U.S. titanium scrap exports surged by 33% in Q3 2024, reaching 3,088t, the strongest performance since Q1 2021. This growth can be attributed to improved margins in international markets. These margins have incentivized U.S. merchants to capitalize on global demand. The UK remained the largest destination for U.S. scrap, with shipments increasing more than fourfold to 745t compared to 2023. Meanwhile, Mexico saw significant year-over-year growth, receiving 300t in Q3 2024, up from just 19t previously. Estonia displayed remarkable growth, increasing its imports by 285% to 208t. In contrast, India showed a decline, reducing its imports of U.S. titanium scrap by 38% to 286t. This suggests shifts in regional trade dynamics.
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