LB Titanium Dioxide Output Falls as Sponge and Battery Materials Expand

LB Titanium

LB titanium dioxide output fell in 2025 as weaker prices, slower demand and rising trade barriers pressured the global pigment market. China’s largest titanium producer reported titanium dioxide production of 1.28mn t, down 1.5% from a year earlier.

LB titanium dioxide output declined even as sales edged higher to 1.26mn t. Domestic sales accounted for 45% of volumes, while international sales made up 55%, showing that overseas markets remain critical to the company’s TiO2 business.

LB titanium dioxide output came under pressure from structural oversupply. New capacity entered the market, prices weakened and several domestic producers cut operating rates to protect margins.

The company also pointed to anti-dumping duties imposed by the EU, Brazil, Saudi Arabia and the Eurasian Economic Union, along with higher US tariffs on Chinese material. These measures have fragmented trade flows and made the global titanium dioxide market more difficult for Chinese exporters.

Titanium Sponge Offers a Stronger Counterweight

LB’s titanium sponge business moved in the opposite direction. Titanium sponge output rose by 2.3% on the year to 71,300t, while sales increased by 0.9% to 67,500t.

The stronger sponge result matters because titanium sponge sits closer to aerospace, industrial titanium mill products and high-performance alloy supply chains. It gives LB a more diversified titanium platform beyond pigment markets.

Titanium sponge prices were also firmer. Domestic 99.7% grade sponge prices averaged 49,665 yuan/t ex-works in 2025, up from 48,270 yuan/t a year earlier.

LB has 80,000 t/yr of titanium sponge capacity, the largest globally. That scale gives the company a major position in a market where feedstock security, product quality and downstream demand from titanium processors remain strategically important.

Titanium concentrate output fell by 3% to 1.45mn t, but LB did not sell concentrate externally. All concentrate was consumed internally to produce titanium dioxide and titanium sponge.

This internal use highlights the company’s integrated titanium value chain. LB can direct feedstock toward different downstream products depending on market conditions, although weak TiO2 demand still affects overall profitability.

Iron ore concentrate output fell more sharply, dropping by 18% to 3.04mn t. Sales decreased by 2.1% to 2.94mn t, showing softer performance in another mineral by-product stream.

Iron Phosphate Growth Signals Battery Materials Diversification

LB’s battery materials business showed much stronger momentum. Iron phosphate output jumped by 72% to 97,600t, while sales rose by 59% to 96,000t.

The growth was driven by firm demand from the lithium-ion battery sector. Iron phosphate is a key precursor for lithium iron phosphate cathode materials, which are widely used in electric vehicles and energy storage systems.

This diversification is strategically important. Titanium dioxide remains LB’s largest product line, but the pigment market is facing oversupply, trade restrictions and weaker pricing. Battery materials offer a different growth channel tied to China’s expanding LFP ecosystem.

LB has 100,000 t/yr of iron phosphate capacity and 50,000 t/yr of LFP capacity. It also has 25,000 t/yr of graphite anode capacity and 50,000 t/yr of graphitisation capacity.

That product base positions LB across titanium, zirconium and battery materials. The company is no longer only a titanium dioxide producer, even though it remains the world’s largest TiO2 producer with 1.51mn t/yr of capacity.

The 2025 results show a clear split in the business. Titanium dioxide is under pressure from oversupply and trade action. Titanium sponge is holding stronger. Iron phosphate is growing with battery demand.

For LB, the industrial challenge is to manage a mature pigment business while expanding higher-growth materials platforms. Its integrated mineral base gives it flexibility, but market conditions across TiO2, sponge and battery materials are moving in different directions.

The Metalnomist Commentary

LB’s results show how Chinese titanium producers are moving beyond pigment exposure into sponge and battery materials. The strategic value lies in feedstock integration, because companies that can shift internal mineral flows between TiO2, titanium sponge and battery precursors will be better positioned in volatile markets.

Airbus Titanium Procurement Pull-Forward Aims to Prevent 2027 Supply Chain Shock

Airbus

Airbus titanium procurement is being pulled forward into 2026 as the aircraft manufacturer tries to avoid a sharp demand surge across the titanium supply chain in 2027. The decision reflects a more cautious approach to supplier visibility after Airbus previously reduced its 2026 titanium demand forecast to lower inventories.

The earlier correction may have gone too far. Airbus now sees a risk that lower 2026 buying could create a bullwhip effect when airframe demand rises sharply next year. By shifting some volumes into 2026, the company aims to smooth purchases and reduce pressure on melters, forgers, mills and downstream aerospace suppliers.

Airbus titanium procurement is closely linked to the A350 production ramp. The A350 is Airbus’ highest titanium-bearing platform, with titanium representing around 15% of aircraft weight. Higher build rates and a shift toward the larger A350-1000 variant will increase material requirements.

Airbus expects 2027 titanium demand to be roughly 30% higher than it expected one year ago. Pulling volumes into 2026 means 2027 demand should still rise from 2025, but remain below 2024 levels.

A350 Ramp-Up Drives Titanium Visibility Needs

The A350 production outlook is the main driver behind Airbus’ revised titanium strategy. Airbus is currently producing seven A350 aircraft a month, after ending 2025 at a rate of five to six a month.

The company plans to reach 10 A350s a month in 2027 and 12 a month in 2028. This production ramp will require more titanium across airframe structures, especially as customer demand shifts toward the larger A350-1000.

The A350-1000 carries a larger material requirement than the A350-900. A production mix weighted more heavily toward the larger variant will therefore increase titanium demand even if headline aircraft output rises gradually.

This is important for the titanium supply chain because aerospace titanium does not move like ordinary industrial metal. Qualified melt, billet, plate, bar, sheet and forged products require long lead times, strict certifications and controlled production routes.

Airbus’ forecast covers only airframe demand. It excludes titanium used in engines, landing gear and other equipment. This means the total aerospace titanium requirement could be higher once engine-makers and equipment suppliers are included.

The decision to bring demand into 2026 also gives suppliers a steadier signal. Aerospace suppliers need visibility to plan sponge, scrap, melt capacity, forging schedules, machining slots and qualification-controlled inventory.

Airbus works on a nine-month firm order placement basis. The company said the demand adjustment was already communicated to the market, although producer responses appear mixed.

One titanium producer said it had not yet seen additional demand linked to Airbus for 2026. Others expect higher titanium requirements from melters and original equipment manufacturers in the second half of the year.

That timing matters. If procurement signals reach upstream suppliers too late, the supply chain may still face bottlenecks in 2027. Titanium capacity exists, but qualified aerospace material availability can tighten quickly when aircraft production accelerates.

Titanium Supply Chain Faces Ramp-Up and Delivery Timing Risk

Airbus’ move highlights the sensitivity of aerospace supply chains after several years of disruption, inventory corrections and uneven delivery schedules. Aircraft demand remains strong, but material flows must match real production rates rather than short-term delivery numbers.

Airbus delivered nine A350s in January-March, implying a rate of three aircraft a month. However, the company said production is already running at seven a month, with deliveries affected by customer rescheduling and downstream part constraints.

This distinction matters for titanium demand. Material consumption follows production activity earlier in the manufacturing cycle, not only final customer deliveries. If industrial output is already at seven A350s a month, titanium requirements can rise before delivery data fully reflect the ramp.

Airbus is also dealing with supply difficulties in some downstream parts fitted late in the assembly sequence. These bottlenecks can delay aircraft handovers while upstream airframe production continues.

For titanium producers, this creates a planning challenge. Final delivery numbers may understate actual material pull if work-in-progress aircraft are moving through the industrial system.

The bullwhip risk comes from this mismatch. If Airbus reduces procurement too much during inventory normalisation, suppliers may cut capacity assumptions. When aircraft demand then accelerates, the supply chain can face a sudden order surge.

That surge can affect sponge buyers, scrap processors, vacuum arc remelters, alloy producers, rolling mills, forgers and machine shops. Aerospace titanium supply is especially vulnerable because customers cannot easily switch to unqualified material or non-approved sources.

The pull-forward strategy is therefore less about buying excess metal and more about stabilising the production curve. Airbus wants suppliers to see a smoother demand profile before the A350 ramp tightens the market.

The titanium market has been uneven. Standard-quality titanium demand has been pressured by aircraft inventory drawdowns, while premium-quality material for engine and high-specification applications has remained stronger.

Airbus’ revised approach could support confidence in airframe titanium demand. It may also reduce the risk that suppliers face a sudden 2027 spike after a weak 2026 procurement period.

The effect will depend on how quickly orders move through the supply chain. If melters and forgers receive stronger demand in the second half of 2026, the market could enter 2027 with better visibility and less disruption.

For aerospace manufacturers, the message is clear. Build-rate recovery requires more than aircraft orders. It requires coordinated material planning across titanium, aluminium, nickel alloys, forgings, castings, fasteners and machined components.

For titanium suppliers, the opportunity is also clear. Companies with qualified capacity, reliable lead times and strong Airbus exposure may benefit from a more stable procurement profile as the A350 ramp progresses.

The Metalnomist Commentary

Airbus titanium procurement pull-forward shows that aerospace supply chains are still vulnerable to planning shocks. The A350 ramp will reward suppliers with qualified titanium capacity, but only if demand signals reach the market early enough to prevent another bottleneck cycle.

Toho Titanium Sales Fall as Aerospace Inventory Correction Hits Sponge Demand

Toho Titanium

Toho Titanium sales fell sharply in the third quarter as aerospace customers continued drawing down inventories instead of ordering new titanium units. The company’s titanium metal sales in October-December dropped 21pc year on year to ¥13bn from ¥16.4bn. Sales for the first nine months also fell 19pc to ¥40.2bn. As a result, Toho Titanium sales now reflect a deeper inventory-led slowdown across the aerospace titanium chain.

This matters because titanium demand weakness is not coming from structural aerospace decline. It is coming from excess inventories built across the supply chain, from sponge to finished parts. That overhang has reduced the need for fresh titanium sponge purchases in 2025. Therefore, titanium sponge demand remains under pressure even while broader aerospace activity stays more resilient in other segments.

Toho’s wider business mix softened the blow, but not enough to offset titanium weakness. Total net sales for April-December reached ¥61.3bn, with catalysts and chemicals contributing part of that base. However, overall nine-month net sales still declined 7pc from a year earlier. Consequently, the titanium downturn remains the main reason the group’s broader sales picture weakened.

Aerospace Titanium Inventories Continue to Delay New Orders

Aerospace titanium inventories are still the core issue behind the current slowdown. Manufacturers across the chain are using existing stock instead of placing aggressive new orders. That pattern has limited demand for upstream titanium producers such as Toho. As a result, Toho Titanium sales are being constrained more by inventory correction than by end-market collapse.

The company’s guidance reflects that cautious environment. Toho maintained its full-year titanium metal sales forecast at ¥53bn. That implies fourth-quarter titanium sales of roughly ¥12.8bn, close to the third-quarter level. Therefore, management is not yet expecting a strong rebound before the fiscal year ends.

This suggests the market is stabilizing at a lower level rather than turning sharply higher. The inventory correction appears persistent enough to cap near-term recovery. Meanwhile, buyers are still waiting for supply chain balances to improve before resuming stronger raw material purchases.

Japan Titanium Market Faces a Slower Recovery Timeline

Japan titanium market conditions now point to a slower recovery than many suppliers would prefer. High inventories across aerospace are expected to persist until at least mid-2026. That means upstream titanium producers may continue facing muted order patterns for several more quarters. Consequently, titanium sponge demand may stay softer even if aircraft and engine activity improves elsewhere.

This split matters for interpreting the market correctly. Downstream aerospace repair and engine demand can stay firm while upstream sponge demand remains weak. The reason is simple: inventory must clear before new raw material buying accelerates. Therefore, Toho Titanium sales are acting as an early warning signal for how uneven the aerospace recovery still is.

The Metalnomist Commentary

Toho’s results show that titanium recovery is still being delayed by inventory, not by lack of long-term aerospace relevance. The market will likely improve, but upstream sponge producers may be among the last to feel it. Until inventories normalize, titanium demand will remain more cautious than aerospace headlines suggest.

China Titanium Forging Project Marks a New Step in Downstream Capacity Growth

Sichuan Panjin

China titanium forging project development is entering a new phase as Sichuan Panjin moves toward first-phase start-up in Xichang. The company has completed construction of the initial 20,000 t/yr phase. It has also commissioned the vacuum consumable arc furnace and finished hot load testing. As a result, commercial operations could begin as early as March after final ramp-up work.

The project matters because it strengthens downstream titanium alloy processing, not just primary material supply. Sichuan Panjin will use titanium sponge from Pangang as feedstock. It will focus on titanium alloy melting and forging for higher-value industrial applications. Therefore, the China titanium forging project supports a broader shift from raw material output to processed titanium products.

This move also fits a wider industrial trend in China’s titanium sector. Producers increasingly want more control over conversion, quality, and regional supply chains. High-specification titanium alloys now matter more for aerospace, chemical processing, and new energy demand. Consequently, new forging capacity carries both industrial and strategic value.

Sichuan Panjin Titanium Alloys Project Expands Regional Processing Depth

Sichuan Panjin titanium alloys capacity is designed to close a long-standing processing gap in Liangshan’s vanadium-titanium industry. The project adds local melting and forging capability to an area known more for upstream resources. That improves industrial depth within western China. Meanwhile, it may reduce reliance on outside processors for downstream titanium conversion.

The first phase alone will add meaningful capacity to the regional market. Once fully ramped, it will provide 20,000 t/yr of titanium and titanium alloy melting and forging capability. The second phase is scheduled to begin in the second half of this year. It is targeted for completion in 2027. Therefore, the full project could become a sizeable new pillar in western China titanium supply.

Ownership structure also gives the project industrial weight. Sichuan Panjin is a joint venture between Pangang Xichang Xingangye and Henan Zhongyuan Titanium. Zhongyuan Titanium, controlled by stainless steel producer Yongjin, holds a 66pc stake. That combination links upstream feedstock access with downstream alloy processing ambition.

Western China Titanium Supply Could Gain More Strategic Relevance

Western China titanium supply could become more competitive as this project moves into production. Market participants expect the new facility to strengthen supply for high-specification titanium alloys. Those grades are increasingly important in aerospace, chemical equipment, and emerging energy systems. As a result, the plant may improve regional responsiveness to higher-end demand.

The project’s scale also signals a value-upgrading strategy rather than a simple capacity addition. Once both phases are completed, total capacity will reach 40,000 t/yr. Annual output value could rise to as much as Yn3bn. That suggests the company is targeting margin improvement through deeper processing and product quality.

For the broader titanium market, this is a notable development. New sponge capacity alone does not create a complete supply chain. Melting, forging, and alloy qualification determine real commercial value. Therefore, the China titanium forging project reflects a more mature stage of industrial expansion.

The Metalnomist Commentary

This project shows how China’s titanium sector is pushing further downstream to capture more value. Capacity growth now matters most where it improves processing depth and alloy quality. If execution stays on track, western China could gain a stronger role in premium titanium supply.

 

EU Ferro-Titanium Imports Hit Highest Level Since 2024 as Russian Supply Dries Up

Ferro Titanium

EU ferro-titanium imports rose to their highest level in more than a year in the first quarter, supported by robust demand from steel mills and cored-wire producers. The increase also reflected a market shift as Russian receipts effectively disappeared and European suppliers captured more share.

EU ferro-titanium imports reached 8,431t in January-March, up 19% from a year earlier and 13% from the previous quarter. The total was the highest since the fourth quarter of 2024, when Russian material was still moving into the bloc in significant volumes.

EU ferro-titanium imports were concentrated in Estonia, Poland, Latvia and the UK. These destinations took a combined 5,119t, equal to 61% of the first-quarter total, up from 51% a year earlier.

The figures show how sanctions, scrap availability and steel-sector buying are reshaping the European ferro-titanium market. Demand has improved, but the supply base has changed sharply.

Sanctions Redirect Russian Ferro-Titanium Toward Asia

Russian ferro-titanium flows into Europe have effectively stopped since sanctions were imposed on Russian ferro-alloys in December 2024. That removed a major historical source of supply from the European market.

Before sanctions, the EU was still receiving 2,000-3,000 t/quarter of Russian ferro-titanium. Those flows helped lift imports to 11,661t in the fourth quarter of 2024.

Now, Russian material has shifted toward Asia. China has become the dominant buyer of Russian ferro-titanium, with imports from Russia rising to a record 3,855t in the first quarter, up from 816t a year earlier.

This shift matters because Europe still needs titanium units for steel and cored-wire production. Ferro-titanium is used to add titanium to steel, where it supports deoxidation, grain refinement and stabilisation in selected grades.

Market participants have said some Russian material may still be reaching Europe through third countries in circumvention of sanctions. That claim highlights the continuing importance of origin control, documentation and compliance in ferro-alloy trade.

Non-EU imports, excluding the UK, reached 1,388t in the first quarter, up from 1,179t a year earlier. India was the leading non-EU supplier, shipping 426t, double the year-earlier level but down 38% from the previous quarter.

Scrap Tightness Supports Ferro-Titanium Price Recovery

Titanium scrap availability became another pressure point. EU imports of unsanctioned titanium scrap from Russia fell sharply to just 37t in the first quarter, all into Germany.

This is a major change for the Baltic route. Estonia imported no Russian titanium scrap in the quarter, compared with an average of 601 t/quarter last year.

Lower scrap availability matters because titanium scrap is a key feedstock for ferro-titanium production. Tighter scrap supply can raise production costs and reduce prompt availability for alloy producers.

European standard-grade ferro-titanium prices averaged $4.70-4.97/kg Ti dp/df Rotterdam in the first quarter, down from $5.68-6.02/kg Ti a year earlier. However, the market strengthened through the quarter.

Prices opened at $4.30-4.60/kg Ti and closed at $4.85-5.30/kg Ti. The rally was initially triggered by the insolvency of Austrian trader LL-Resources, although its ferro-titanium subsidiary LLR-Ecotech said operations were unaffected.

The price rise then gained support from stronger mill demand under long-term contracts, prompt buying and quarterly spot enquiries. Tighter titanium scrap availability also added cost pressure.

The rally continued into the second quarter, suggesting that buyers remain sensitive to reduced Russian availability and constrained scrap flows.

For Europe, the key issue is not only volume. The region must secure compliant titanium units for steelmaking while avoiding sanctioned material and managing higher feedstock costs.

The first-quarter data therefore point to a more regionalised ferro-titanium market. Europe is relying more on domestic and approved suppliers, while Russian material is increasingly absorbed in Asia.

EU, Fe-Ti Import

The Metalnomist Commentary

Europe’s ferro-titanium market is becoming a compliance-driven supply chain. The real advantage will go to producers that can secure clean titanium scrap, prove origin and deliver reliable alloy supply into steel and cored-wire demand.

TiVac ferro-titanium liquidation reshapes UK titanium scrap and alloy supply

TiVac

TiVac ferro-titanium liquidation marks a major shift in UK ferro-titanium production and scrap demand. The TiVac ferro-titanium liquidation follows months of weak prices and high power costs that crushed already thin margins. As a result, the TiVac ferro-titanium liquidation will tighten local alloy supply while forcing scrap dealers to rethink export strategies.

TiVac ferro-titanium liquidation driven by power costs and weak prices

TiVac shut its Sheffield ferro-titanium operations because the UK cost base became unsustainable. Electricity costs stayed high while ferro-titanium prices slid toward five-year lows, leaving many contracts barely profitable. The company had nameplate capacity of 1,500 t/month, but operated closer to 500–600 t/month recently.

The TiVac ferro-titanium liquidation now triggers a full wind-down of production and scrap processing. All buildings, furnaces, crushers, equipment and land will be sold as part of the dissolution process. This closes two key Sheffield sites at Oakes Green and Blackburn Road, both long-standing hubs for processing titanium scrap into ferro-titanium.

TiVac operated under a conversion model for major traders and alloy specialists. It processed scrap and produced ferro-titanium for FE Mottram (now fully under Metraco), Metals and Alloys International, and Westbrook Light Alloys. However, this model could not withstand prolonged low prices and high UK input costs.

Supply shifts to Estonia as UK scrap faces pressure

Market logistics will now pivot as Metraco rebalances its ferro-titanium footprint. The group plans to rely on its Ti Q plant in Ahtme, Estonia, which has 600 t/month nameplate capacity and can expand further using a second furnace. Long-term UK contracts will first draw on inventory and then transition gradually to Estonian output.

Westbrook has also moved to protect its customer base during the TiVac ferro-titanium liquidation. The company expects to meet its long-term obligations from existing stock while it evaluates strategic options. Meanwhile, idle capacity at other European producers should absorb most of the lost TiVac volume, limiting short-term price impact.

The biggest immediate shock from the TiVac ferro-titanium liquidation will hit the UK titanium scrap market. TiVac’s disappearance removes a significant local buyer of titanium scrap, especially revert and offcuts suitable for FeTi production. If dealers hesitate to export to the EU because of added logistics and paperwork, domestic UK scrap prices could face downward pressure.

The closure also reshapes the UK ferro-titanium landscape. Sheffield-based Transition Metals now becomes the sole domestic producer of ferro-titanium in the UK. However, overall regional supply will remain balanced in the near term, because inventory and spare capacity at other European plants can cover reduced UK output. The longer-term question is whether UK-based ferro-titanium production can remain viable without structural relief on power and operating costs.

The Metalnomist Commentary

TiVac’s liquidation highlights how energy costs and weak alloy prices can quickly erode Europe’s titanium recycling base. For mills and superalloy buyers, supply will likely remain secure, but more material will flow through continental hubs rather than UK converters. For titanium scrap generators, the real challenge now is finding efficient export routes and maintaining value in a softer domestic market.

EU Ferro-Titanium Prices Decline Amid Weak Demand and Russian Imports

Russian Ferro-Titanium

Ferro-titanium prices in the European and UK markets have faced a significant decline of 6.5% in the second half of 2024, driven by several key factors. The most notable reasons for this decrease include an ongoing influx of Russian ferro-titanium imports, weakening demand from steel mills, and a substantial drop in the cost of titanium scrap.

As of recent assessments, Russian ferro-titanium prices are sitting at $5.20–5.60 per kilogram of titanium delivered to Europe (import duty unpaid), representing a widening discount compared to European and UK market prices. Sellers in Europe, holding large inventories, are eager to offload their stock before the end of the year, while Russian producers are scrambling to secure contracts before sanctions take full effect on December 20, 2024.

Russian Imports and Weak Demand Pressure Prices

Historically, ferro-titanium prices see an uptick in the first quarter, driven by steel mills restocking and seasonal disruptions in scrap deliveries around late December and early January. This year, however, the expected price rally failed to materialize. Although European Union (EU) sanctions initially prompted some price increases due to mills tightening procurement terms, the continued influx of Russian imports has kept prices under pressure. While Russian ferro-titanium volumes to the EU have fluctuated, the EU has remained the largest importer of Russian material.

From January to August 2024, the EU imported 6,115 tons of Russian ferro-titanium, down from 8,018 tons in the same period of the previous year. However, in July and August, imports rose by 21% and 9%, respectively. Estonia and the Netherlands accounted for 70% of these imports, with Germany and Latvia sharing the remainder. Despite a drop in overall imports, the EU continues to face competition from other regions, particularly China, which has seen a rise in Russian ferro-titanium exports.

The lack of spot demand across multiple non-ferrous markets, including those adjacent to steel and aluminum industries, has been a contributing factor. The sluggish performance of Europe's automotive and construction sectors further dampened demand. Steel association Eurofer recently downgraded its 2024 steel consumption forecast to a 1.8% contraction, signaling weak prospects for the steel market in Europe. The closure of Volkswagen plants in Germany and ongoing industrial slowdowns have heightened concerns over Europe's economic outlook.

Titanium Scrap Costs and Market Outlook

The downturn in ferro-titanium prices has been exacerbated by a sharp drop in titanium scrap prices. In early October 2024, titanium turnings prices plummeted, prompting ferro-titanium prices to follow suit. As scrap dealers began releasing more material into the market, the availability of titanium scrap increased, driving down prices further. Currently, the spread between 90/6/4 titanium turnings and ferro-titanium in Europe is around $3 per kilogram, up from a year-to-date average of $2.81 per kilogram. In the U.S., titanium scrap prices have also fallen, with mixed turnings now priced at $0.90–1.00 per pound.

Scrap processors, sitting on high inventories of aerospace-grade turnings and solids, may push out more ferro-titanium grade material to free up space and generate cash flow before the year ends. This move could further intensify the downward pressure on ferro-titanium prices, as scrap processors attempt to liquidate their stocks.

Market Forecast and Challenges Ahead

Despite expectations of a price rebound, both short-term and medium-term forecasts for the ferro-titanium market remain uncertain. Eurofer has projected a 3.8% recovery in steel consumption by 2025, while the World Steel Association expects a 1.2% growth in the global steel market in 2025. However, these increases are unlikely to signal a full recovery, as they come after two years of contraction in the sector. As Europe grapples with economic challenges, the demand for ferro-titanium remains subdued, and prices are expected to stay under pressure in the coming months.

Enduring Reliance Amid Sanctions: Europe’s Russian Titanium Dilemma

VSMPO Titanium

Introduction: A Supply Chain Unbroken in Wartime

Despite sweeping economic sanctions imposed by the West following Russia’s invasion of Ukraine in February 2022, one supply chain has proved remarkably resilient: Russian titanium sponge. Europe’s quandary over this advanced material—indispensable to aerospace, defense, and medical-device manufacturing—has only deepened.

Russia’s Command of Titanium

Russia ranks among the world’s largest titanium producers. VSMPO-AVISMA, the country’s flagship producer, accounts for 90% of Russia’s titanium output and exports to some 50 countries. The company is estimated to control up to 30% of the global titanium market and nearly half of aerospace-grade supply.

Russia’s dominance rests on abundant raw-material reserves and comparatively low energy costs. Because titanium smelting is energy-intensive, commercial viability depends on cheap power and gas—conditions Russia has historically met.

Airbus A380

Trade that Continues Despite Sanctions

On 7 March 2022, Boeing announced it would halt purchases of Russian titanium used in aircraft manufacturing. Rolls-Royce and Boeing subsequently suspended procurement from VSMPO-AVISMA indefinitely.

Europe, however, charted a different course. Airbus urged the European Union to keep Russian titanium outside future sanctions packages. As Airbus chief executive Guillaume Faury argued, titanium represents a small share of Russia’s total exports, so sanctions would inflict little pain on Moscow while dealing a heavy blow to Europe’s aerospace industry.

Today, Airbus still sources roughly half of its titanium from VSMPO-AVISMA. Boeing, by contrast, once relied on Russia for about one-third of its titanium but has since stopped buying Russian material.

The Limits—and Exceptions—of EU Sanctions

Notably, while the EU has restricted imports of Russian steel and coal, titanium has not been sanctioned. The metal remains a strategic material used in fuselages, turbine blades, satellites, and other critical systems.

Dependence on Russian metals endures in other segments as well. From March to June 2022, combined EU-US imports of Russian aluminum and nickel rose to $1.98 billion—more than 70% above the prior-year period.

Washington and Brussels have generally refrained from designating industrial metals as sanction targets. Europe continues to import large volumes of Russian natural gas, and Russia supplies about 40% of global palladium—vital for semiconductors—implicating everything from automobiles to smartphones.

CBAM

CBAM: A New Variable

The EU’s Carbon Border Adjustment Mechanism (CBAM), introduced in October 2023, adds another layer of complexity. CBAM initially covers cement, electricity, fertilizers, iron and steel, aluminum, hydrogen, and certain downstream products in steel and aluminum. After a transition phase through 2025, full implementation begins in 2026, imposing carbon costs on imports equivalent to those borne by EU producers.

While fertilizers, cement, hydrogen, and non-exported electricity may see limited near-term impact, aluminum stands out as a key target sector. Most exports to the EU beyond steel and aluminum are not yet covered, though the European Commission has signaled possible expansion to high-leakage categories such as organic chemicals and plastics.

Russia is structurally disadvantaged under CBAM. Steel production in Russia, Ukraine, and Türkiye tends to be more carbon-intensive, implying higher embedded-carbon costs at the border.

Ambiguities in Sanctions and Industry’s Dilemma

The United States placed VSMPO-AVISMA on its “military end-user” list, restricting access to advanced technologies, but stopped short of a direct ban on titanium sales—an acknowledgment of global industry’s reliance on the material.

Indeed, during the early stages of the war, VSMPO-AVISMA avoided sweeping US and European sanctions. Although Washington temporarily listed the company in December 2020, the measure was later rescinded.

Recent moves, however, suggest a tightening environment. In April 2024, a joint US-UK action prompted the CME and LME to prohibit trade in newly produced Russian aluminum, copper, and nickel dated after 13 April—an effort widely read as constraining Russia’s influence in metals markets.

Ukraine Titanium Mine

Ukraine: A Viable Alternative?

Against this backdrop, Ukraine has emerged as a potential alternative. Until 2020, the country supplied 90% of Russia’s ilmenite—the feedstock for titanium sponge. With that supply chain severed by war, Ukrainian resources could help challenge Russia’s dominance.

US companies have begun talks with Kyiv on a joint venture anchored by the Zaporizhzhia Titanium-Magnesium Plant (ZTMP). Such partnerships could forge a new titanium hub in Eastern Europe, strengthening Ukraine’s economic footing for decades.

The risks are significant. Ongoing conflict and occupation threaten both Donbas deposits and the ZTMP facilities, which remain exposed to shelling and sabotage.

Aviation’s Growth—and Its Dilemma

The aerospace-titanium market was valued at roughly $100 million in 2022 and is projected to grow at a CAGR exceeding 5% from 2023 to 2032—reflecting the rebound in air travel and a pipeline of commercial aircraft programs.

Despite supply-chain turbulence from war, energy constraints, and labor shortages, passenger traffic continues to recover, lifting titanium demand. In October 2022, Airbus announced plans to deliver more than one aircraft per week to India, persisting with expansion despite engine-supply challenges and domestic carrier capacity constraints—developments that further complicate titanium sourcing.

The Reality of Diversification

Boeing reportedly began diversifying away from Russian titanium after the 2014 annexation of Crimea. Airbus, by contrast, remains heavily reliant on Russian supply.

Globally, China produced around 100,000 t of titanium in 2013—twice the combined output of Russia and Japan at the time—making it the world’s largest producer. Japan ranked third, with Osaka Titanium Technologies standing as the world’s second-largest producer of titanium sponge.

The Metalnomist Commentary: An Unfinished Dilemma

Europe’s struggle over Russian titanium sponge epitomizes the knotty realities of modern supply chains. Between economic sanctions and security imperatives, between industrial competitiveness and moral principle, Europe has yet to find a definitive answer.

With CBAM’s full force arriving in 2026, higher carbon-cost pass-throughs on Russian metals seem likely, intensifying pressure to rewire supply. Yet, as Airbus’s position illustrates, displacing Russian titanium in the short term remains daunting.

The gap between industrial necessity and political sanction endures—witness VSMPO-AVISMA’s August 2025 statement that it stands ready to resume cooperation with Boeing. For now, Europe must navigate this dilemma with prudence: balancing sanction principles, industrial realities, and emergent environmental rules—while accelerating the use of recycled titanium wherever feasible.

Riverspan United Titanium acquisition targets growth in titanium fasteners

United Titanium

The Riverspan United Titanium acquisition signals fresh private equity interest in specialty metal fasteners. The Riverspan United Titanium acquisition gives the Ohio-based titanium fastener maker new strategic, operational and financial backing. As a result, the Riverspan United Titanium acquisition positions the company to chase market share and accelerate product development across high-spec end markets.

Riverspan United Titanium acquisition brings new capital and scale ambitions

The deal sees Chicago-based private equity firm Riverspan Partners acquire United Titanium for an undisclosed sum. United Titanium produces fasteners from titanium, zirconium and other specialty metals for demanding applications. Therefore, Riverspan’s capital and management support should help expand capacity, shorten lead times and deepen customer coverage.

Riverspan says it will provide “strategic, operational and financial support” to United Titanium. This language typically implies investments in manufacturing systems, sales channels and possibly bolt-on acquisitions. However, success will depend on balancing growth initiatives with the strict quality controls required in aerospace, medical and defense supply chains.

Titanium fastener specialist positioned across critical end markets

United Titanium’s product portfolio spans bolts, screws, nuts, washers, fittings and custom machined parts. It also supplies mill products in a range of titanium and zirconium alloys. This breadth gives the Riverspan United Titanium acquisition exposure to multiple high-value sectors.

Key end markets include defense, commercial aerospace, medical devices and broader industrial applications. Meanwhile, secular trends such as aircraft lightweighting, corrosion-resistant chemical equipment and high-performance medical implants all favour titanium fasteners. Therefore, United Titanium sits at the intersection of critical materials and regulated, long-cycle industries.

By adding private equity backing, the Riverspan United Titanium acquisition could support investments in new alloys, coatings and digital traceability. These upgrades would help meet tightening specifications from OEMs and regulators, while improving differentiation against lower-cost commodity fastener producers.

The Metalnomist Commentary

This transaction underlines how specialist titanium and zirconium fastener makers are attracting focused private equity capital. If Riverspan can scale United Titanium without diluting quality, the platform could become a more aggressive consolidator in niche aerospace and medical fasteners. Market participants should watch for capacity expansions, new certifications and potential M&A moves that signal the next phase of this growth story.

China's Titanium Sponge Production to See Significant Expansion Amid Demand Growth

China's Titanium Sponge

China's titanium sponge production capacity is set to experience a major boost, potentially reaching between 300,000 and 500,000 tonnes per year over the next three to five years, according to An Zhongsheng, secretary-general of the China Nonferrous Metals Industry Association's titanium zirconium and hafnium branch (CNIA-Ti). This expansion is expected to be driven by increased demand across various sectors including aerospace, marine engineering, chemical production, computer, communication and consumer electronics (3C), daily necessities, and air conditioning, as reported at the China and CIS Titanium Industry Development Forum held in Xi'an, Shaanxi province.

Global civil aviation demand, recovering from the impacts of the Covid-19 pandemic, has put strain on aviation-grade titanium sponge supplies. An emphasized that while the aerospace industry is recovering, industrial sectors are propelling China's titanium market with consistent growth in recent years.

Currently, China's titanium sponge production capacity hovers around 300,000 tonnes per year. In the broader market, titanium's growing use in civilian products is anticipated to be a significant growth catalyst for the Chinese titanium industry.

Although global demand for titanium in the medical industry has surged, Chinese demand in this sector has been hampered by healthcare reforms promoting the use of cost-effective materials. Despite this, prices for titanium sponge are projected to remain relatively stable, enhancing its appeal across a range of applications. An Zhongsheng reassured industry stakeholders that China’s domestic supply of titanium sponge will meet future demands due to planned capacity expansions.

The anticipated rapid growth in titanium sponge production marks a transition for titanium from a rare metal to a more commonly used material, according to An. In the first half of this year, China produced 123,500 tonnes of titanium sponge, according to CNIA-Ti data.

Nevertheless, China continues to rely on imports for approximately 35-40% of its titanium ores and concentrates, reflecting its position in the global supply chain. Last year, global production of titanium ore and concentrate amounted to 8.75 million tonnes (t) of titanium dioxide equivalent, with China contributing 37%, followed by Mozambique (18%), South Africa (11%), and Canada (6%).

In the realm of titanium dioxide production, China led with 55% of global output in 2023, maintaining growth through domestic capacity expansions. Additionally, the world's titanium sponge production rose by 29% to 347,000 tonnes in 2023, with China’s output surging from a 25% share in 2022 to a dominant 63%. Russia, Japan, and Saudi Arabia also witnessed increases in their titanium sponge output, while Ukraine reported zero production.

For titanium mill products, global production in 2023 reached 248,000 tonnes, with China accounting for a commanding 64%, trailed by the United States (14%), Russia (13%), Japan (6%), and Europe (3%).

Osaka Titanium Capacity Expansion Rises as Sponge Supply Costs Climb

Osaka Titanium

Osaka Titanium capacity expansion is becoming more expensive as Japan’s titanium sponge producer faces higher raw material, equipment, and labour costs. The company has raised planned investment at its Amagasaki plant to ¥39 billion, up from its earlier estimate of ¥33 billion.

The project will increase titanium sponge capacity at Amagasaki from 40,000 tonnes per year to 50,000 tonnes per year by 2028. Osaka Titanium said construction is progressing as planned, despite the higher capital requirement.

Osaka Titanium capacity expansion remains strategically important because titanium sponge is a critical upstream input for aerospace, defense, industrial, and high-performance alloy supply chains. The investment shows that sponge producers are still preparing for stronger long-term demand, even as project costs rise.

Higher Costs Reflect Pressure Across Titanium Supply Chains

The increased investment highlights cost inflation across the titanium value chain. Sponge expansion requires energy-intensive processing, specialized equipment, strict quality systems, and skilled labour, all of which are becoming more expensive.

Osaka Titanium’s revised budget also reflects the broader challenge facing upstream producers. Capacity additions are necessary, but they require large capital commitments before downstream demand fully materializes.

The Amagasaki expansion is scheduled for completion within the 2027 financial year, which runs from 1 April 2027 to 31 March 2028. That timing positions the company to support future titanium demand growth from aerospace recovery, defense procurement, and industrial applications.

Japan Strengthens Its Role in Titanium Sponge Supply

Osaka Titanium capacity expansion reinforces Japan’s position as a major supplier of high-quality titanium sponge. This matters because aerospace and defense customers require stable, qualified, and traceable titanium inputs.

The planned increase to 50,000 tonnes per year will give Osaka Titanium more flexibility to serve strategic customers. It may also help reduce supply-chain pressure if global titanium demand strengthens faster than new sponge capacity comes online.

The investment also carries competitiveness implications. As production costs rise, titanium sponge producers with reliable operations, established customer approvals, and strong process control will hold an advantage over less qualified suppliers.

The Metalnomist Commentary

Osaka Titanium’s higher investment shows that titanium sponge capacity is not cheap or easy to add. The market may want more titanium supply, but qualified upstream expansion still depends on capital discipline, technical reliability, and long-term customer confidence.

Safran Non-Russian Titanium Supply Secured as Aerospace Procurement Shifts Further West

Safran, Olivier Andries

Safran non-Russian titanium supply is now fully secured, marking a major shift in aerospace titanium procurement. The French aerospace manufacturer said it has completed its transition away from Russian producer VSMPO-Avisma. This move includes alternative sources for billets and landing gear forgings. As a result, Safran non-Russian titanium supply has become a clear example of titanium supply chain diversification in the aerospace sector.

This change matters because aerospace-grade titanium sourcing is slow and difficult to replace. Certification rules are strict, large forging capacity is limited, and long-term contracts shape most procurement decisions. Therefore, Safran non-Russian titanium supply reflects years of industrial planning rather than a quick purchasing adjustment.

Aerospace Titanium Procurement Is Moving Away From Russian Dependence

Aerospace titanium procurement has been moving steadily away from Russian dependence since early 2022. Safran has now completed that shift, while other major manufacturers are still reducing exposure. Airbus, for example, has continued receiving Russian titanium under existing contracts while building alternative sourcing options. Consequently, Safran non-Russian titanium supply gives the market one of the clearest completed examples of western supplier replacement.

This transition also matters because Russian titanium has not been fully blocked across all western markets. The EU did not sanction Russian-origin titanium, and US measures remained limited to export licensing. Even so, aerospace manufacturers have increasingly chosen to diversify supply for strategic and political reasons. Therefore, aerospace titanium procurement is now being shaped by resilience as much as price or availability.

Titanium Supply Chain Diversification Is Reshaping the Competitive Map

Titanium supply chain diversification is also changing the wider industry balance. Safran’s exit adds more pressure to VSMPO-Avisma’s international order book at a time when Russian titanium volumes are already under strain. Lower sponge production and workforce adjustments suggest that the loss of western business is becoming more visible. As a result, Safran non-Russian titanium supply is not only a procurement story. It is also a competitive signal.

The broader market is now shifting toward western and allied suppliers with aerospace-grade capability. Large forgings, billet, and flat-rolled titanium products are becoming more strategically important across the supply chain. That means titanium producers with certified aerospace capacity may gain stronger long-term relevance. Meanwhile, OEMs are showing that supply security now carries more weight in purchasing decisions.

The Metalnomist Commentary

Safran’s move matters because titanium supply is no longer judged only by technical qualification and price. It is now judged by geopolitical resilience as well. The bigger takeaway is clear: aerospace titanium procurement is being redrawn around trusted capacity, and that shift will likely continue across the industry.

ELG Utica titanium solids center signals major shift in US titanium scrap

Titanium Scrap

ELG Utica titanium solids center plans highlight a strategic realignment in US specialty metals recycling. The ELG Utica titanium solids center will move solids processing from Hartford, Connecticut, to a new highly automated US “center of excellence.” As a result, the ELG Utica titanium solids center strategy will free Hartford to focus on higher-throughput titanium turnings processing.

New US “center of excellence” for titanium solids

ELG Utica Alloys will shut titanium solids operations at its Hartford facility as part of this realignment. The company will instead process titanium solids at a new specialised production site somewhere in the US. The new center will feature higher levels of automation and greater capacity for titanium solids processing.

The company has not disclosed the location or provided capacity estimates for the new facility. However, ELG expects the center to be operational in 2027. This timing aligns with growing aerospace and industrial demand for certified titanium scrap streams.

Hartford shifts toward higher titanium turnings throughput

The split between solids and turnings processing will reshape ELG’s US titanium footprint. Hartford will increasingly focus on boosting throughput of titanium turnings, which require different handling and safety protocols. This separation should improve operational efficiency and yield across both solids and turnings product lines.

Customers may benefit from more consistent quality and tighter specifications as each site specialises further. Meanwhile, the new automated facility should support tighter process control and lower unit costs for titanium solids. That combination will be important as OEMs and melt shops push for reliable, traceable, low-contamination titanium scrap feedstock.

The Metalnomist Commentary

This move underscores how titanium recyclers are redesigning plant networks around product specialisation, automation and customer qualification needs. While the lack of capacity guidance leaves some uncertainty, a dedicated ELG Utica titanium solids center should strengthen Western titanium scrap supply chains by 2027. The key watchpoint will be where the new site lands and how aggressively competitors respond with their own “centers of excellence.”

VSMPO-Avisma Titanium Pipes to Support Egypt’s El Dabaa Nuclear Plant

VSMPO-Avisma

VSMPO-Avisma titanium pipes will be supplied to Egypt’s El Dabaa nuclear power plant, strengthening Russia’s role in critical materials supply for nuclear infrastructure. The Russian titanium producer will deliver 150t of titanium pipes for integrated equipment in unit 4 of the project.

VSMPO-Avisma titanium pipes are commercially pure welded products made at the company’s Verkhnyaya Salda facility. The company launched serial production of CP welded titanium pipes in March.

VSMPO-Avisma titanium pipes are relevant because CP titanium is widely used in heat exchangers and cooling systems. Its corrosion resistance makes it suitable for nuclear power plants that rely on seawater cooling or other aggressive operating environments.

The supply deal also reinforces the strategic link between titanium manufacturing and nuclear energy construction. As countries build new reactors, demand rises for corrosion-resistant, qualified and reliable metal components.

CP Titanium Supports Nuclear Cooling Reliability

Commercially pure titanium is valued in heat exchangers because it resists corrosion in chloride-rich environments. That makes it especially useful in power plants located near seawater sources.

El Dabaa’s equipment will require materials that can operate reliably over long periods. Titanium pipes can reduce corrosion risk, extend service life and improve the reliability of cooling-related systems.

The 150t order also shows that nuclear projects create specialised demand for titanium beyond aerospace and defence. Energy infrastructure can absorb high-value titanium products where performance and durability are essential.

VSMPO-Avisma has already supplied welded titanium tubes for unit 4 of Turkey’s Akkuyu nuclear power plant. That project was also built using a Russian design.

This track record gives the company a stronger position in Rosatom-linked international nuclear projects. It also shows how Russia can bundle reactor construction with domestic metal and component supply.

El Dabaa Extends Russia’s Nuclear Industrial Reach

Russia’s state-owned nuclear company Rosatom is building the 4.8GW El Dabaa nuclear power plant in Egypt. Phase one is expected to come online in 2028, while all four units are planned to be operational by 2030.

Construction of unit 4 began in January 2024. The titanium pipes supplied by VSMPO-Avisma will support that unit’s equipment package.

The project is important for Egypt’s long-term energy strategy. Nuclear power can provide baseload electricity, reduce fuel import exposure and diversify the country’s energy mix.

For Russia, El Dabaa extends its industrial influence through nuclear technology, engineering services and material supply. Titanium pipes are only one component, but they show how nuclear export projects can support wider Russian industrial chains.

For titanium markets, the order confirms that corrosion-resistant CP titanium remains a strategic material for energy infrastructure. Demand from nuclear, desalination, chemical processing and marine systems can provide industrial support outside cyclical aerospace markets.

The Metalnomist Commentary

The El Dabaa order shows that titanium’s strategic value extends well beyond aircraft structures. Nuclear projects need materials that can survive corrosive environments for decades, and CP titanium remains one of the key metals for that role.

Norsk Titanium Airbus Partnership Advances Titanium Additive Manufacturing for Aerospace

Norsk Titanium

Norsk Titanium Airbus partnership plans mark another step toward industrializing titanium additive manufacturing for aerospace production. Norwegian additive manufacturer Norsk Titanium has agreed to work with Airbus on directed energy deposition using Norsk’s rapid plasma deposition technology.

The agreement will place a Merke IV rapid plasma deposition machine at Airbus’ Varel production site in Germany. The companies will jointly evaluate manufacturing controls, validation data, and process documentation to support broader aerospace use.

Norsk Titanium Airbus partnership activity builds on an existing long-term master supply agreement. Under that arrangement, Norsk already supplies rapid plasma deposition titanium material for A350 production at Varel.

Rapid Plasma Deposition Targets Titanium Cost and Scrap Reduction

Rapid plasma deposition uses plasma arcs to melt titanium wire in an inert atmosphere and build near-net-shape preforms. This approach can reduce machining requirements and scrap compared with conventional forged titanium components.

This matters because aerospace titanium production is costly, material-intensive, and highly dependent on qualified processing routes. Conventional machining can remove large volumes of titanium from forged or rolled input stock, creating both cost and scrap management challenges.

Norsk’s process offers a different manufacturing route by building material closer to the final component geometry. If the process scales reliably, it could improve buy-to-fly ratios, reduce waste, and support more efficient titanium supply chains for aircraft structures.

Process-Based Qualification Could Reshape Aerospace Adoption

The collaboration aims to move beyond part-specific qualification toward broader process-based methodologies for selected titanium products. This is strategically important because aerospace adoption of additive manufacturing often slows when each component requires a separate qualification path.

A more standardized process-based approach could make titanium additive manufacturing easier to deploy across multiple parts. However, the technology remains at an early stage of industrialization, and aerospace customers will require strong evidence on repeatability, traceability, mechanical performance, and production control.

For Airbus, the Varel installation creates a closer link between additive process development and real aircraft production needs. For Norsk Titanium, the agreement strengthens its position as a supplier of industrial-scale titanium preforms for commercial aerospace programs.

The Metalnomist Commentary

The Norsk-Airbus agreement shows that aerospace additive manufacturing is shifting from demonstration toward controlled industrial qualification. The key breakthrough will come when titanium DED becomes a repeatable production process, not only a part-by-part engineering solution.

Osaka Titanium Export Sales Target 15% Growth Despite Market Headwinds

Osaka Titanium

Osaka Titanium export performance targets significant improvement with projected sales rising 15% to ¥37.7 billion for fiscal 2026. The Japanese titanium producer's Osaka Titanium export strategy focuses on aerospace sector demand, particularly from European aircraft manufacturer Airbus, as the company seeks to offset domestic market weakness and Boeing-related disruptions.

Aerospace Demand Drives Export Optimism

Osaka Titanium export revenues benefit from sustained aerospace industry requirements across multiple segments. Titanium sponge demand from Airbus remains robust, supporting the company's international sales projections for the current fiscal year. Additionally, maintenance, repair, and overhaul (MRO) services for aircraft engines continue generating strong titanium product demand.

Meanwhile, export sales represent approximately 86% of Osaka Titanium's total titanium business revenues. This heavy international focus positions the company to capitalize on global aerospace recovery trends while reducing dependence on volatile domestic markets. However, the company maintains confidentiality regarding actual export volume data.

Boeing Disruptions Impact Previous Performance

Nevertheless, Osaka Titanium faced challenges in the previous fiscal year ending March 2025. Export sales declined 4% year-on-year to ¥33.5 billion ($231 million), primarily due to operational disruptions at Boeing facilities. A seven-week strike at Boeing's Washington factories significantly impacted titanium demand throughout 2024.

Therefore, the company's current optimism reflects expectations that aerospace sector recovery will overcome lingering Boeing-related headwinds. Osaka Titanium sources raw materials from diversified global suppliers including Canada, Australia, India, and African nations, providing supply chain flexibility for international operations.

Pricing Pressures Challenge Revenue Projections

However, potential pricing adjustments could affect Osaka Titanium export revenue targets despite volume growth expectations. Company representatives indicated possible titanium product price reductions for export markets, driven by declining raw material costs and titanium ore price index movements. These pricing pressures suggest potential downward revisions to sales outlook projections.

Furthermore, domestic titanium sales face significant headwinds with overall revenues projected to decline 3% to ¥43.9 billion. Weak domestic demand for ordinary industrial applications and ongoing inventory adjustments weigh heavily on the Japanese titanium market, reinforcing the strategic importance of export growth.

The Metalnomist Commentary

Osaka Titanium's export-focused strategy exemplifies how specialized metals producers navigate market volatility through geographic diversification and aerospace sector positioning. While Boeing's operational challenges created near-term disruptions, the company's emphasis on European aerospace partnerships and MRO services demonstrates strategic adaptation to evolving industry dynamics in the critical titanium supply chain.

Titanium Exempted from US Tariffs: Aerospace Industry Impact Remains Unclear

Titanium

New US Tariff Exemptions for Titanium Could Affect the Aerospace Supply Chain

On April 2, 2025, US President Donald Trump announced new tariffs on several foreign imports, including an exemption for titanium, titanium scrap, and ferro-titanium. While the exemption helps protect titanium trade, the broader implications for the aerospace industry remain uncertain.

Titanium Exemption and Its Effects

The US tariffs announced include a list of exemptions, with titanium in its various forms being spared. However, other metals like hafnium, molybdenum, vanadium, nickel scrap, and aluminum scrap were not exempted. The new tariff scheme does not affect pre-existing duties on Chinese titanium products, including a 20% duty on titanium products from China, which has been in place since March 4, 2025. Despite the exemption for certain forms of titanium, Chinese titanium sponge imports will still be subject to a 60% duty, which remains unchanged.

Additionally, imports of unwrought titanium from Japan, Kazakhstan, and Saudi Arabia will still face a 15% tariff, though efforts to remove this tariff for sponge imports are underway. For US titanium scrap imports, particularly from the EU and UK, which make up over half of the US intake, the tariff exemption is crucial. Without it, US scrap dealers, processors, and consumers would face substantial challenges, as the US does not produce enough vacuum-grade titanium scrap domestically to meet demand.

Aerospace Industry and Supply Chain Impact

While the titanium exemption provides relief for many manufacturers, the broader impact of the tariffs on the aerospace industry is still unclear. Aerospace manufacturers are uncertain about the tariff's effects on finished parts, components, and engines, particularly regarding supply chains that involve cross-border production of engine parts like the Leap-1A and Leap-1B engines for the A320neo and Boeing 737 Max.

Canada and Mexico were excluded from the new US tariffs, alleviating concerns for companies like Bombardier, Airbus, RTX, and Heroux-Devtek, which operate in those regions. Still, some titanium producers believe the situation could change rapidly, as it is difficult to define the boundaries between parts made from titanium and assembled components that use other materials, such as nickel-based alloys or aluminum.

China’s 34% Tariff on US Exports

In response to US tariffs, China has imposed a 34% tariff on all US imports, which will affect titanium imports from the US. Despite importing limited amounts of titanium from the US, China still relies on US imports for critical aerospace components, including parts for its C919 aircraft. The C919 uses the CFM Leap-1C engine, which is assembled in both the US and France.

FE Mottram Ferro-Titanium Expansion Strengthens Baltic Scrap Processing Capacity

Mottram

FE Mottram ferro-titanium expansion is moving into a more important phase in Estonia. The company is installing titanium turnings roasters and ferro-titanium crushers sourced from the former TiVac facility in the UK. This equipment will strengthen titanium scrap processing and improve product preparation at its Ahtme plant. As a result, FE Mottram ferro-titanium expansion is becoming a meaningful development in the Baltic ferro-titanium market.

The first milestone is already complete. Mottram said the turnings roaster has been commissioned and fully tested. That unit removes oil contamination from titanium turnings before melting. Therefore, the new line should improve feed preparation and widen the plant’s scrap handling flexibility.

This matters because scrap quality directly affects melting efficiency and alloy consistency. The roaster also complements Mottram’s existing wash line, which is a more specialized and costly method for higher-grade scrap. Consequently, FE Mottram ferro-titanium expansion gives the company a more practical processing mix for different scrap streams.

Titanium Scrap Processing Gets More Flexible With New Roaster and Crushers

Titanium scrap processing is gaining more flexibility through the new equipment package. One additional crusher is already installed and operating, while two more are nearing commissioning. These crushers can size ferro-titanium into specific fractions such as 10-50mm lumps or 0-2mm powder. As a result, Mottram can improve product customization for different customer requirements.

The company is also benefiting from operational continuity with former TiVac expertise. Former TiVac director Richard Matthewman is advising Mottram in Estonia on scrap processing and ferro-titanium melting. That support matters because equipment transfer alone does not guarantee a smooth scale-up. Therefore, experience and technical know-how are helping reduce execution risk.

The project is not fully complete yet. Installation work has paused temporarily while UK technical specialists return home for a scheduled break. However, Mottram still expects all UK equipment to be fully installed and operational in early March. Meanwhile, that timeline suggests the company remains broadly on track.

FE Mottram Ferro-Titanium Expansion Could Lift Plant Readiness Beyond Current Capacity

FE Mottram ferro-titanium expansion also includes a broader capacity option. The Ahtme plant currently has nameplate capacity of 600 t/month. Mottram plans to commission an additional furnace transferred from the former Mottram/TiVac site at Oakes Green in May-June. That furnace could approximately double plant capacity if fully used.

However, the company’s current strategy is more cautious than aggressive. Mottram plans to reserve the extra furnace as a backup rather than immediately use it as primary expansion capacity. That decision suggests management is prioritizing reliability and operational security. As a result, FE Mottram ferro-titanium expansion looks disciplined rather than speculative.

This approach may prove commercially smart. In ferro-titanium and titanium scrap processing, equipment resilience can matter as much as maximum throughput. A backup furnace gives the plant more flexibility during maintenance, disruptions, or shifts in feedstock quality. Therefore, the company is building a stronger operating platform, not only chasing volume growth.

The Metalnomist Commentary

This project matters because it combines equipment transfer, technical continuity, and cautious capacity planning in one move. FE Mottram is not simply adding machinery. It is building a more flexible titanium scrap processing base that could strengthen its position in the regional ferro-titanium market.