Rising titanium scrap markets squeeze alloy producer margins

European titanium scrap prices have increased by more than 5% over the week to Wednesday March 31 while the range for ferro-titanium is narrowing, applying a squeeze on margins for producers of the alloy, according to industry sources.

Scrap markets for turnings are over $2 per lb cif Europe, with suppliers increasing their offer prices amid a persistent downturn in the aerospace sector; aircraft manufacturing has nose-dived since the start of the Covid-19 pandemic because of the slump in air travel in line with international restrictions on people movement.
Fastmarkets assessed the price for titanium scrap turnings, unprocessed type 90/6/4, 0.5% Sn max, cif Europe at $1.90-2.10 per lb on Wednesday, up 10 cents a lb. This compared with the 2020 low of $0.60-0.65 per lb from the start of July into early September. The market is now at its highest since July 2012, when the price was assessed at $2.00-2.10 per lb.

The corresponding price assessment for higher tin content titanium scrap turnings, unprocessed type 90/6/4, 0.5-2% Sn max, cif Europe was $1.80-1.90 per lb on the same...

Published

Declan Conway

April 01, 2021

15:07 GMT

Galway