Ferro-Titanium Section 232 Tariffs Requested by US Producer Galt Alloys

Galt Alloys

Galt Alloys petitioned the Commerce Department to include ferro-titanium Section 232 tariffs on imports. The Ohio-based producer argues foreign shipments depress domestic production and market prices significantly. This ferro-titanium Section 232 tariffs request could transform the US specialty alloys market dynamics.

Domestic Capacity Meets US Steel Industry Demand

Galt and Michigan-based AmeriTi possess sufficient capacity to supply America's annual requirements completely. The US imported only 2,022 tonnes of ferro-titanium in 2024, down 50% from 2021. Meanwhile, Canada, Estonia, Latvia, and the UK supplied 94% of total imports. These nations ship primarily powdered ferro-titanium, a premium product over lump form.

Import costs could increase 50% if tariffs apply after Trump doubled steel rates. Currently, ferro-titanium carries only a 3.7% general duty rate versus steel's 25%. Furthermore, the alloy remains exempt from Trump's "Liberation Day" measures entirely. The USMCA agreement also protects Canadian ferro-titanium from additional duties presently.

Strategic Implications for US Steel Manufacturing

Ferro-titanium acts as a critical deoxidizer and desulfurizer in steel production processes. The alloy contains 70% titanium with iron comprising the remaining balance. Therefore, securing domestic supply strengthens America's steel manufacturing independence and competitiveness. Galt claims imports prevent domestic expansion and profitability despite US price premiums.

Foreign producers contest dumping allegations with Latvia's LLR expecting no specific actions. However, the ferro-titanium Section 232 tariffs proposal aligns with broader protectionist policies. As a result, US steel producers face potential cost increases for essential inputs. Stakeholders must submit comments on Galt's petition by June 4th deadline.

The Metalnomist Commentary

Galt's petition highlights the delicate balance between protecting domestic producers and maintaining competitive input costs for downstream manufacturers. With only two US ferro-titanium producers versus diverse import sources, tariffs could create supply vulnerabilities and price spikes. The 50% import decline since 2021 suggests market forces already favor domestic production without additional protection.