US Titanium Scrap Market Sees Significant Growth in Q3 2024 Amid Shifting Trade Dynamics

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. According to U.S. customs data, 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 as domestic generation rates decline. The surge in imports is indicative of a shift in sourcing strategies as 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 also attributed to a significant 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, have experienced double-digit percentage increases in shipments to the U.S. These shifts reflect a broader adjustment in the global titanium scrap supply chain, where U.S. buyers are diversifying 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. The growth in exports can be attributed to improved margins in international markets, which 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 the same period in 2023. Mexico, in particular, saw the most significant year-over-year growth, receiving 300t in Q3 2024, up from just 19t in the previous year. Estonia also displayed remarkable growth, increasing its imports by 285% to 208t. However, India showed a decline, reducing its imports of U.S. titanium scrap by 38% to 286t, suggesting shifts in regional trade dynamics.