Overcoming High Tariffs through Titanium Recycling Materials

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Reducing Costs by Using Titanium Scrap in the Age of High Tariffs

Since Donald Trump's election, the world has entered an era of high tariffs. In response to recent U.S. tariff policies, global companies have faced significant challenges in sourcing raw materials. This is especially true in the steel industry, which is struggling due to the influx of low-priced Chinese products. Companies in this sector are working tirelessly to secure materials and reduce costs in various ways.

The tariffs on Chinese materials have further diminished the competitiveness of U.S. companies in the domestic market. In addition, a predicted global industrial slowdown adds to the challenges. To remain competitive, companies must prioritize cost reduction. However, finding viable alternatives in this high-tariff era remains a struggle.

The situation is different in the specialty steel sector. Unlike common materials such as iron, stainless steel, and copper, which are largely controlled by China, the use of scrap offers limited cost savings in these areas. However, specialty alloys like nickel and titanium provide a significant opportunity for cost reduction. By using scrap materials in the production of these alloys, companies can achieve a 15-20% reduction in costs, making it a highly effective strategy for cutting expenses.

Scrap → Feedstock

Global Companies and the Shift Toward Scrap Use

Despite these benefits, the use of scrap in the specialty alloys sector remains relatively low, with only a few companies with advanced technology utilizing it. The main reason for this is a lack of understanding of its practical benefits. Integrating scrap into the production process can lead to substantial improvements in efficiency and simplification of operations, which naturally reduces costs. However, many companies fail to recognize these advantages, often due to a lack of experience.

To truly cut costs, increasing scrap usage is crucial. Additionally, the tariff situation has so far spared scrap materials from high taxes, making their use even more attractive. The growing need for scrap is becoming increasingly apparent as industries look for ways to cut costs and avoid tariff impacts. This raises the question: where can companies source specialty metal scrap?

South Korea Sees the Rise of a Scrap Specialization Recycling Company

To address these challenges, a specialty metal recycling company based in South Korea(DongA Special Metal) has developed technology to enhance scrap usage. This company has been recycling specialty alloys such as nickel, titanium, and zirconium for years, producing titanium sponge substitutes and feedstock for export to global markets. They offer a comprehensive service that includes advising on scrap alloy usage and ensuring that the final product meets industry standards.

Ti Sponge VS Ti Cobble

The company has particularly focused on titanium, a material known for its strength and elasticity. They break down titanium and process it into titanium sponge substitutes. This method not only makes titanium more affordable but also reduces the carbon emissions associated with titanium sponge production, which has become a significant concern in the metals industry. This innovation addresses both cost reduction and environmental challenges, making it an ideal solution for companies aiming to enter the U.S. market in the high-tariff era.

In recent years, the U.S. has increasingly turned to scrap use in the metals industry. In 2021, all U.S. titanium sponge plants were shut down due to environmental concerns, and the country now relies entirely on imports. As the use of scrap and alloys continues to grow, it’s clear that companies looking to stay competitive must address material sourcing challenges to succeed in the future.

DongA Special Metal Scrap Recycling Process

U.S. Tariff Hike Puts Pressure on China’s Tantalum Feedstock Market

Tantalum

The recent U.S. decision to impose a 25% tariff on Chinese unwrought tantalum is set to create significant challenges for the tantalum feedstock market. This move, part of the Section 301 tariffs, will come into effect on September 27, having been delayed from August. The new tariffs will impact the demand for tantalum feedstock materials, including ores, pentoxide, and potassium fluotantalate, creating uncertainty within the market.

Impact of U.S. Tariff on Chinese Exports

China has long been a leading supplier of unwrought tantalum to the U.S., responsible for around 40% of total U.S. imports of this critical material between 2020 and mid-September 2024. In the first seven months of 2024 alone, the U.S. imported 177 tons of unwrought tantalum, a figure that already surpasses the total imports for all of 2023.

However, the volume of Chinese tantalum exported to the U.S. has been steadily declining. The U.S. imported 321 tons in 2023, a 56% drop from the 730 tons imported in 2022. Of this, only 131 tons came from China, marking the lowest level in years. This downward trend is likely to accelerate further as the tariffs come into effect, prompting U.S. buyers to reconsider their reliance on Chinese tantalum.

Lower Demand for Tantalum Feedstock

As a result of the anticipated reduction in downstream demand, producers of tantalum feedstock in China are already feeling the pressure. For instance, Chinese potassium fluotantalate producers have reported receiving lower bids from tantalum smelters in recent days. Bid prices have dropped to approximately ¥830-840/kg, down from ¥850/kg before the mid-autumn holiday in mid-September.

The electronics industry, a major consumer of tantalum, is also likely to be affected. Some companies are now required to avoid sourcing tantalite from Africa due to a dispute between the International Tin Supply Chain Initiative (ITSCI) and the Responsible Minerals Initiative (RMI). This dispute, combined with the U.S. tariff hike, is leading to further hesitation among tantalum smelters to source feedstock from Africa.

Chinese Smelters' Response and Outlook

Despite the current challenges, some Chinese smelters are optimistic about domestic supply. “We are not short of feedstock because there is ample tantalum scrap feedstock supply, which is sufficient to feed China’s domestic tantalum production,” commented a source from a South China-based smelter. However, many smelters and traders remain cautious, focusing on fulfilling domestic orders while closely monitoring global market developments.

With the U.S. tariff hike set to take effect, the outlook for China's tantalum feedstock market remains uncertain. Tantalum suppliers are attempting to raise their prices, but market participants believe the increased tariffs will make it difficult to conclude new deals at elevated prices.

As the U.S. prepares to implement its new tariffs on Chinese tantalum, the ripple effects are being felt throughout the supply chain. From lower demand in the electronics sector to falling bid prices for feedstock, the market faces a challenging road ahead. While Chinese producers remain resilient with alternative feedstock sources, the long-term impact of the tariffs could reshape global supply chains and market dynamics.

Germany Pushes EU to Impose Aluminium Scrap Export Tariffs

Aluminum Scrap

Rising US demand sparks supply concerns and threatens Europe’s circular economy framework

Aluminium Deutschland Warns of Scrap Outflow Risk

Germany's aluminium industry group, Aluminium Deutschland, has urged the EU to impose aluminium scrap export tariffs. This demand follows the United States’ decision to implement a 25% tariff on primary aluminium imports, while keeping aluminium scrap exempt from the tariff.

As a result, US buyers are likely to switch from importing primary aluminium to sourcing cheaper scrap — particularly from Europe. This shift could lead to a serious shortage of scrap for European recyclers, who rely on stable domestic supply for their operations.

US-EU Price Gap Accelerates Market Arbitrage

The arbitrage between US and EU aluminium prices has widened sharply in recent months. According to market data, the premium gap surged from $110/t in November to nearly $700/t in early May 2025. This creates a strong incentive for exporters to redirect scrap to the US market, further tightening EU supply.

Aluminium Deutschland emphasized that this trend could undermine Europe’s recycling industry. President Rob van Gils called for “swift and decisive action” to avoid dismantling years of progress in circular economy infrastructure.

Europe Faces Growing Scrap Scarcity

Europe's aluminium scrap supply is already strained. Sluggish industrial activity has lowered fresh scrap generation, while Asian demand remains strong, forcing EU recyclers to compete globally. If the EU does not act, companies could face escalating shortages, threatening decarbonisation goals and raw materials security.

The Metalnomist Commentary

Germany’s call for aluminium scrap export tariffs reflects a growing geopolitical competition over raw materials. As secondary aluminium becomes a substitute for tariffed primary metal, the EU risks losing strategic feedstock to global arbitrage. Scrap policy will increasingly define the success or failure of Europe’s industrial climate goals.

 

European Aluminium Industry Pushes for Scrap Export Restrictions

Al scrap

Rising Pressure for Scrap Export Controls

The European aluminium scrap market is facing mounting pressure as supply tightness collides with strong export demand. Industry groups such as European Aluminium and Aluminium Deutschland have intensified lobbying for export tariffs to secure domestic scrap supply. Their push comes as the US raises tariffs on primary aluminium imports, potentially boosting American demand for European scrap.

Exports of European aluminium scrap surged in recent years, particularly to Asia. The EU and UK together shipped 1.57mn tonnes in 2024, a 23pc increase compared with 2022. India and China accounted for the bulk of these flows, while exports to the US, though smaller, grew sharply. European Aluminium warned that rising US interest, combined with current supply shortages, risks creating a “full-blown scrap crisis.”

Industry Debate and Market Risks

However, not all stakeholders agree that restrictions are the solution. Scrap merchants argue that supply shortfalls are driven more by weak industrial activity than by exports. Low production in automotive, construction, and machinery has reduced available grades like aluminium turnings, which are essential for European secondary smelters. They caution that tariffs may not address these structural issues and could trigger reciprocal trade barriers, complicating Europe’s own scrap imports.

At the same time, many producers identify high energy costs as the bigger threat to smelter viability. Merchants note that no smelter closures have been directly tied to scrap shortages, while escalating electricity prices have forced cutbacks. Despite this, calls for restrictions continue to gain traction, reflecting a broader trend of resource nationalism as countries prioritize domestic recycling over exports.

The Metalnomist Commentary

The debate over aluminium scrap export restrictions underscores a critical tension between free trade and industrial security. While tariffs may stabilize domestic availability, they risk distorting markets and inviting retaliation. The EU must weigh these risks carefully, especially as global competition for low-carbon feedstock intensifies. Energy costs, more than scrap scarcity, remain the sector’s existential challenge.

China's Aluminium Scrap Imports Expected to Climb as Import Curbs Ease

China's Aluminium Scrap

China's aluminium scrap imports are poised for a significant rise after the country announced the easing of import restrictions, effective November 15. The revised regulations include the addition of secondary high-purity aluminium and secondary deformed aluminium alloys to the list of approved imports, alongside secondary wrought aluminium alloys, which were authorized in 2020. These developments reflect China's strategic shift toward mitigating domestic aluminium scrap shortages and optimizing resource utilization.

Policy Easing and Its Implications

The new policy, announced in an official notice on October 23, sets stringent standards for imported scrap: a minimum aluminium content of 91% and a maximum impurity limit of 0.8%. Market participants believe this regulatory change could encourage smelters to increase their reliance on aluminium scrap feedstock, thereby lowering raw material costs amid persistent domestic shortages.

Challenges from Negative Import Arbitrage

Despite the optimistic outlook, China's aluminium import arbitrage has been predominantly negative since April. High import prices, tied to primary aluminium price negotiations, have dampened traders' enthusiasm. However, the introduction of this policy has generated renewed interest in the scrap market. A scrap trader noted that while current price pressures persist, the policy shift has ignited buying interest.

Recent Import Trends and Market Dynamics

From January to September, China imported 135.2 million tonnes of aluminium scrap, marking a 6.7% year-on-year increase, according to customs data. Meanwhile, domestic alumina prices have surged in recent months due to tight bauxite supplies and robust demand from aluminium producers. This price environment underscores the importance of cost-effective scrap imports to support the country’s aluminium industry.

With these policy adjustments, China aims to address supply shortages, stabilize aluminium markets, and ensure a more sustainable approach to raw material sourcing. However, market dynamics, particularly import pricing and arbitrage conditions, will play a critical role in determining the full impact of this regulatory shift.

European Aluminium Renews Call for Aluminium Scrap Export Restrictions

European Aluminium Scrap

Push for Export Fees to Protect Recycling Industry

European Aluminium has issued its third call this year for restrictions on aluminium scrap exports from the EU. The industry body urged policymakers to impose export fees, arguing that such measures would help secure more scrap for European recycling facilities. According to the association, stronger controls could stimulate investment, boost remelting capacity, and close the loop within Europe under strict environmental and social standards.

Impact of Scrap Shortages on EU Producers

The push comes as secondary aluminium alloy producers struggle with squeezed profit margins, driven by high scrap costs and rising European energy and labor expenses. Scrap availability has tightened as generation slowed in automotive, construction, and manufacturing sectors, while exporters in India and Asia raised purchase prices. European Aluminium reported that around 15pc of recycling furnace capacity is currently idled due to insufficient scrap supply, warning that unchecked exports risk undermining the bloc’s sustainability goals.

The Metalnomist Commentary

The repeated call from European Aluminium highlights the tension between global scrap demand and Europe’s recycling ambitions. Export restrictions could secure domestic feedstock, but they may also trigger retaliatory measures and complicate global trade. The EU must balance industrial resilience with open-market principles if it aims to lead in the circular economy transition.

China Plans to Boost Domestic Copper Resources and Scrap Usage by 2027

China Copper Resources

The country's strategy focuses on expanding copper production and enhancing secondary material utilization.

China has announced plans to increase its domestic copper resources by 5-10% by 2027, along with a significant push to boost the use of secondary materials such as copper scrap. According to a February 11th statement from China’s Ministry of Industry and Information Technology (MIIT), the country will focus on expanding copper exploration and production in several key regions. These efforts align with China’s broader strategy to enhance its copper supply chain and reduce dependency on external sources.

Increased Domestic Copper Exploration and Smelting Projects

As part of its initiative, China will promote exploration in regions such as Tibet, Xinjiang, Yunnan, and Heilongjiang provinces. The country has already made substantial progress in discovering new copper resources, with over 20 million tonnes of new copper found in the Qinghai-Tibet Plateau since 2021. This is double the quantity discovered during the 2016-2020 period. To further boost copper production, China plans to develop new copper mines in these regions and integrate new smelting projects with concentrate production facilities. These projects are expected to play a key role in meeting the country’s growing demand for refined copper.

Boosting Copper Scrap Utilization

Another significant aspect of China’s strategy is increasing the use of copper scrap. Copper smelters will be encouraged to use more secondary copper, which has already become a major feedstock in the production of refined copper. In 2023, more than 31% of China's refined copper came from scrap, according to the China Nonferrous Metals Industry Association (CNMIA). To support this, the government plans to back the construction of new copper scrap recycling facilities and increase imports of copper scrap. In 2024, China’s copper scrap imports rose by 13%, reaching over 2.25 million tonnes, as smelters shifted to more cost-effective scrap rather than concentrates due to higher concentrate prices.

Global Copper Supply and Smelting Capacity

China’s increased demand for copper concentrate, along with the country’s focus on smelting capacity expansions, is expected to tighten global copper concentrate supply. This supply crunch has already led to a decline in treatment and refining charges (TC/RCs) since 2024. Market participants suggest that smelting capacity expansions may outpace new copper mine projects, contributing to continued global supply tightness in 2025.

Conclusion

China’s push to increase domestic copper resources and enhance the use of secondary materials, such as copper scrap, reflects a strategic move to secure its position in the global copper market. With growing demand for refined copper and a constrained global supply of copper concentrates, the country’s efforts to expand production capacity and increase recycling will be essential to meeting future copper needs.

China's Copper Scrap Imports Surge in 2024 Amid Tight Supply and Policy Changes

Copper Scrap

China’s copper scrap imports saw a notable 13% increase in 2024 as domestic refined copper producers turned to scrap due to a tightening copper concentrate supply. This shift helped offset the shortages in copper concentrate, which traditionally serves as the primary feedstock for refining operations. The increased demand for scrap also led to a significant month-on-month rise in December, with imports soaring by 25% compared to November.

December Surge Attributed to Price Dynamics and US-Related Imports

A key factor contributing to this December surge was the reopening of the import arbitrage in the second half of November. This shift occurred as domestic copper metal prices in China rose above those on the London Metal Exchange (LME), making imports more economically viable. Additionally, scrap buyers accelerated the clearance of US-origin copper scrap at customs to avoid potential countermeasures after the election of US President Donald Trump. This urgency, combined with strategic import decisions, led to a marked rise in imports in the final month of the year.

Government Policy Supports Copper Scrap Imports in 2025

In a bid to further boost the availability of copper scrap, China has expanded its import duty exemptions for recycled copper feedstocks. For 2025, the government broadened the scope of products under HS code 74040000 to include not only recycled brass and copper feedstocks but also recycled copper and alloy feedstocks. Import duties for these materials remain at zero, a move that further encourages the import of scrap and helps meet the growing demand for copper in China.

Copper Cathode Output Declines in 2023-24

Aurubis, Europe’s leading copper producer and recycler, reported a 4% drop in its copper cathode production for the 2023-24 fiscal year, totaling 578,000 tons. The decline was driven by a 30% reduction in output at its Hamburg facility, where operations were delayed following a maintenance shutdown. Despite the setback in Germany, the company maintained a solid performance in Bulgaria, with 229,000 tons produced at its Pirdop site.

China Copper Scrap Cash Spreads Widen Amid Price Fluctuations

China Copper Scrap

Cash spreads for Chinese copper scrap imports have increased from last week due to lower copper prices on major exchanges.  Scrap sellers maintained firm offers as LME copper prices fell to a four-month low of $8,757/tonne on December 31st.

Import Arbitrage Loss and Tariff Exemptions

China's copper scrap import arbitrage loss widened to -1,000 yuan/tonne ($137/tonne) this week, compared to a small profit in late December. This widening loss is attributed to lower domestic spot copper metal prices relative to LME prices, resulting in limited trading activity.  Despite this, China will expand its import duty exemptions on more recycled copper feedstocks in 2025. The government has broadened the products included under HS code 74040000 to "recycled copper and alloy feedstock" for 2025, from "recycled brass copper feedstock and recycled copper feedstock" in 2024. The import duty for this HS code remains at zero for both years.  However, market participants remain cautious about importing copper scrap from the US, even with the expanded tariff exemptions in 2025.

Market Outlook and Price Rebound

LME three-month copper prices have since rebounded, rising from a close of $8,781.50/tonne on December 31st to a close of $8,980/tonne on January 7th.  Positive investor sentiment has been fueled by the People's Bank of China announcement of increased financial support for technology innovation and consumption, along with measures to enhance liquidity, safeguard capital markets, and potential reductions in interest rates and the reserve requirement ratio for banks.

European Aluminum CBAM Flaws Warning Highlights Competitiveness Risks

European Aluminum CBAM

European Aluminum CBAM flaws emerged as critical concerns as the industry association warned that the EU's carbon border adjustment mechanism threatens bloc competitiveness ahead of tomorrow's European Parliament vote. The European Aluminum CBAM flaws assessment, conducted by Ramboll Management Consulting, identifies three fundamental design issues that could actively harm Europe's aluminum industry while providing unfair advantages to importers who avoid carbon costs across their full value chains.

Scrap Content Verification Creates Competitive Disadvantages

European Aluminum CBAM flaws include significant challenges in accurately verifying scrap content within aluminum products imported into the EU. The difficulty in verification enables importers to over-declare scrap content, avoiding carbon costs while redirecting higher scrap content products toward EU markets for financial incentives. This manipulation provides importers substantial advantages over EU producers who face carbon costs across their complete value chain operations.

Meanwhile, Ramboll recommends assigning default values to all imported primary and secondary metal to eliminate domestic disadvantages. This approach would prevent gaming of scrap content declarations while ensuring competitive parity between domestic and imported aluminum products. The current verification system's inadequacy undermines CBAM's intended purpose of leveling competitive playing fields.

Aluminum scrap

Alumina Inclusion Could Drastically Increase EU Costs

However, the study argues that adding aluminum feedstock alumina to CBAM parameters could raise EU alumina costs by 12-16% by 2030, escalating to 24% by 2034. These cost increases would severely impact European aluminum smelter competitiveness while potentially driving production offshore. Ramboll recommends excluding alumina from CBAM until comprehensive downstream sector coverage ensures balanced implementation.

Therefore, the report suggests creating dedicated emissions trading scheme benchmarks for alumina rather than incorporating it directly into CBAM mechanisms. This alternative approach would address carbon leakage concerns without imposing excessive cost burdens on European aluminum producers. The timing of alumina inclusion requires careful coordination with broader CBAM implementation phases.

Indirect Emissions Scope Expansion Presents Implementation Challenges

Furthermore, expanding CBAM beyond direct scope 1 emissions to include indirect scope 2 and 3 emissions would significantly increase CBAM fees and European aluminum costs. European producers face indirect carbon costs through electricity pricing that don't correlate with their actual emissions profiles. Third-country producers avoid equivalent carbon costs while CBAM lacks verification mechanisms for electricity-related emissions.

As a result, European Aluminum director general Paul Voss urged immediate CBAM implementation pause for aluminum until design flaws receive correction and competitiveness impacts undergo proper assessment. The association demands potential aluminum removal from CBAM scope if ongoing reviews demonstrate continued harm rather than protection. Alternative carbon leakage protection measures may require extension beyond 2030 if CBAM proves ineffective.

The Metalnomist Commentary

The European Aluminum association's CBAM critique highlights fundamental tensions between climate policy objectives and industrial competitiveness, demonstrating how well-intentioned carbon border mechanisms can inadvertently disadvantage domestic producers they aim to protect. The complexity of aluminum value chains, from alumina feedstock through scrap recycling, creates verification challenges that sophisticated importers can exploit, undermining CBAM's core premise of ensuring fair competition while driving global decarbonization.

Novelis, TSR Forge 3-Year Partnership for Aluminum Scrap Supply in Push for Low-Carbon Future

TSR Recycling

In a pivotal move toward sustainability, US-based aluminum manufacturer and recycler Novelis has announced a three-year agreement with European scrap processing leader TSR Recycling. This strategic partnership will secure a stable supply of approximately 75,000 metric tons of end-of-life, pre-sorted, and processed aluminum scrap annually, supporting Novelis’ mission to deliver low-carbon aluminum sheet for automotive applications.

With Novelis recycling around 700,000 metric tons of aluminum scrap in Europe last year, the company aims to expand this figure by an additional 50,000 metric tons, boosting its green production capacity. TSR Recycling, well-versed in the processing of both ferrous and non-ferrous scrap, has long collaborated with Novelis, and this agreement further solidifies their shared commitment to a sustainable, low-emission future for the metals industry.

A Rising Demand for Recycled Material

The agreement reflects an intensifying demand for recycled aluminum as part of the global shift toward sustainable feedstock in metal production. Aluminum producers, increasingly pressured to lower scope 2 emissions, are prioritizing materials with high recycled content. Novelis has taken a proactive approach, working closely with automotive clients to integrate both pre- and post-consumer scrap into its high-recycled-content aluminum alloys. "Availability of end-of-life material is crucial as Novelis is constantly developing innovative solutions with its automotive customers," the company stated, highlighting the importance of a reliable scrap supply to support greener, circular manufacturing.

This partnership positions Novelis and TSR at the forefront of an industry shift where sustainability isn't just a strategy but a growing imperative driven by regulatory changes, consumer expectations, and an accelerating demand for low-emission products in the automotive sector.

Chinalco Boosts Copper Anode Capacity Amid Rising Scrap Use

Chinalco

Major Upgrade at Dianzhong Smelter Targets Increased Output and Efficiency

China’s Chinalco has commenced operations of a new copper anode furnace at its Dianzhong smelter in Chuxiong, Yunnan province. This initiative is part of a 515 million yuan ($70.2 million) upgrade project. The upgrade aims to elevate the smelter’s copper anode production from 191,700 tonnes per year to 249,800 tonnes per year. Furthermore, a 210,000 tonnes per year copper cathode refining facility is set to launch in May.

Increased Scrap Integration

The Dianzhong smelter, previously reliant on copper concentrate, now incorporates a copper scrap feeding facility. This addition aligns with the growing trend of utilizing secondary copper. In 2023, over 31% of China's refined copper output originated from copper scrap, according to the China Nonferrous Metals Industry Association. The rising cost of copper concentrate has driven many producers to favor copper scrap. This shift led to a 14% year-on-year increase in China's copper scrap imports, reaching 2.03 million tonnes from January to November.

Market Implications

This expansion by Chinalco reflects the broader industry trend of adapting to feedstock cost fluctuations and increasing reliance on recycled materials. The upgrade will strengthen Chinalco's copper production capabilities and contribute to the supply of copper cathode. The increased usage of copper scrap also highlights the growing importance of the circular economy within the metals industry.

US Antimony feedstock sourcing expands to secure smelter supply

US Antimony feedstock

US Antimony feedstock sourcing broadened across the US and overseas to stabilize operations. The company moved to secure inputs for its Montana and Mexico smelters. As a result, it advanced domestic mining claims and lined up new international suppliers. However, it also flagged issues with Australian material quality and logistics.

Domestic expansion: Alaska and Montana

US Antimony feedstock sourcing grew with new Alaska claims, including a 150-acre site near Fairbanks. The firm expects faster permitting since the land is neither federal nor state. Meanwhile, reacquired claims beside its Montana smelter should deliver stibnite within months. Therefore, domestic ore should lower supply risk and trucking distances.

International diversification: Bolivia and Chad

Bolivia will supply up to 150 t/month of antimony flake starting in early 2026. A 10 t pilot shipment arrives at the Montana smelter in August. Additionally, two sources in Chad will feed the Madero smelter, starting with 80 t. Subsequent deliveries should reach 100 t/month to support steady throughput. Canada also lifted feedstock to 857 t year-to-date, up 121 percent.

Australian sourcing faces setbacks following a 50 t shipment held 82 days by Chinese customs. Concurrently, incoming ore showed elevated arsenic and iron, pressuring processing costs. However, broader sourcing and scrap blending can offset penalties and maintain recoveries. Therefore, the portfolio approach underpins more reliable antimony supply for strategic markets.

The Metalnomist Commentary

Diversification is the right hedge as geopolitics and impurities raise feedstock risk. Watch ramp discipline in Bolivia and Chad and impurity management in Montana. If logistics hold, US Antimony can claw back margin despite uneven market conditions.

MTM Critical Metals raises $33mn for Texas metals recovery

MTM Critical Metals

Funding secured for a 2026 start

MTM Critical Metals raises $33mn for Texas metals recovery through an A$50mn placement. The pre-permitted site targets commercial operations in 2026. Institutional investors led by Petra Capital backed the raise. The plan strengthens a US critical minerals hub. MTM Critical Metals raises $33mn for Texas metals recovery to accelerate build-out.

Technology, feedstock and partnerships

The company will deploy Flash Joule Heating to recover high-value metals. The FJH process has recovered antimony and gallium from e-waste. Long-term agreements secure 1,100 t/yr of e-scrap feedstock. Dynamic Lifecycle will supply 700 t/yr for five years. MTM will rebrand as Metallium as construction advances.

MTM will allocate 40pc to site and infrastructure. It will direct 25pc to FJH system construction. Around 15pc will fund feedstock procurement. Remaining funds support working capital and commissioning. As a result, the project remains staged and capital efficient.

The firm seeks US government support to de-risk execution. Meanwhile, a new agreement covers mixed rare earth carbonate from Brazil. Meteoric Resources’ Caldeira project could feed future REE separation. The Texas site adds optionality beyond e-waste streams. This broadens revenue across antimony, gallium, and rare earths.

The Metalnomist Commentary

This raise advances midstream capacity where supply chains remain fragile. If feedstock ramps smoothly and FJH scales, Metallium could become a key US recycler for strategic metals.

China's Copper Scrap Imports Surge in July Amid Narrowed Arbitrage Losses

China's copper scrap imports rose sharply in July, increasing by 14.8% from the previous month, driven by a reduction in import arbitrage losses that had previously discouraged purchases. The narrowing of the arbitrage loss, which fell to between -Yn1,000 and -Yn1,500 per tonne in June from nearly -Yn6,000 per tonne in May, played a key role in this surge.

In May, the London Metal Exchange (LME) saw three-month copper prices reach a record high of $11,104.50 per tonne, making copper concentrate an increasingly expensive feedstock for Chinese producers. In response to the rising costs, many refined copper producers in China turned to copper scrap as an alternative, leading to a 20% increase in copper scrap imports during the first half of the year.

The supply crunch for copper concentrate significantly impacted the market, pushing treatment and refining charges (TC/RCs) down by 88% from January to June. The shift towards copper scrap was further accelerated by the cancellation of a tax rebate on 1 August, prompting most secondary copper processors to purchase scrap at the full tax rate. This trend is expected to continue into August, supported by the narrower import arbitrage losses in July.

China Expands Copper and Aluminium Duty Exemptions for 2025

Recycled Copper

In a bid to promote sustainable growth, China has announced expanded import duty exemptions on recycled copper and aluminium feedstocks for 2025. This change is part of the country’s broader strategy to bolster green and low-carbon development in its metal industries. The move reflects China’s ongoing efforts to ease restrictions on secondary copper and aluminium imports, which could have significant implications for both domestic and international markets.

Expansion of Duty Exemptions

Under the new policy, China will expand the HS code 74040000 to include “recycled copper and alloy feedstock” for 2025, up from just "recycled brass copper feedstock" and "recycled copper feedstock" in 2024. Similarly, the HS code 76020000 will also broaden to cover “recycled aluminium and alloy feedstock” from the previous scope of "recycled cast aluminum alloy feedstock" in 2024. The import duties for both categories will remain at zero for 2025, continuing the exemptions in place for 2024.

This expansion is intended to enhance the country’s circular economy and support the shift toward greener practices in the recycling and processing of metals. According to China’s Ministry of Commerce, the adjustments will help promote low-carbon development, driving demand for sustainable production methods.

The move follows an increase in China’s copper scrap imports, which saw a 14% rise from January to November in 2024 compared to the previous year, signaling a positive trend for the country's metal recycling sector.

Continued Duties on Other Base Metals

While China is easing import duties on certain recycled metals, the government has decided to keep export duties on various base metals, minor metals, ferro-alloys, and rare earths in place for 2025. This includes maintaining the 40% export duty on ferro-chrome, a 25% duty on silico-manganese and ferro-silicon, and a 20% export duty on ferro-manganese. These duties align with China’s broader objective of controlling the export of energy-intensive and pollution-heavy products.

The country will also continue with export duties on a variety of concentrates, such as lead, zinc, tantalum, and niobium, as well as a 20% duty on tin, tungsten, and antimony concentrates, which are less frequently exported due to China’s limited domestic resources of these metals. Additionally, China will maintain duties on several metals, including a 5-15% export duty on copper, nickel, and zinc alloys and products.

China's new policy also includes a zero import duty on spodumene for 2025, marking another significant move in its strategic approach to securing key raw materials for its growing battery and electronics industries.

Rusal Begins Commercial Production of Low-Carbon Foundry Alloys

Rusal

Post-Consumer Scrap Boosts Low-Carbon Aluminium Output

Russian aluminium producer Rusal has commenced commercial production of low-carbon foundry alloys at its Irkutsk aluminium smelter. The new production line integrates post-consumer scrap into Rusal’s Allow brand, which is manufactured using renewable hydropower. This move strengthens the company’s position in the growing low-carbon aluminium market.

Rusal began trial production in early 2023 with scrap accounting for around 20% of feedstock. The proportion has now increased to approximately 40% for commercial output. According to the company, the process involves adding consumer scrap to molten low-carbon aluminium, ensuring both emissions reduction and efficient resource use.

Targeting the Automotive Industry’s Sustainability Demands

The adoption of low-carbon foundry alloys is driven by rising demand from industries prioritizing sustainability, particularly automotive manufacturing. Rusal aims to supply customers seeking environmentally responsible aluminium units for casting components. By combining recycled materials with hydropower-based aluminium production, the company aligns with global carbon reduction goals and offers a competitive advantage in markets with strict sustainability standards.

The Metalnomist Commentary

Rusal’s integration of post-consumer scrap into low-carbon aluminium reflects a critical industry trend toward circular production models. The ability to meet both environmental targets and performance standards will be key in capturing market share in sectors like automotive, where sustainability is becoming a procurement requirement. This approach also demonstrates how aluminium producers can reduce emissions without compromising product quality.

Europe's Reliance on Nickel Pig Iron to Persist Until CBAM's Full Implementation

ANGLO AMERICAN

Europe’s stainless steel industry will continue to rely heavily on nickel pig iron (NPI) imports until the European Union's carbon border adjustment mechanism (CBAM) enters its definitive phase in 2026. John Eastwood, head of sales for stainless and specialty steel raw materials at Anglo American, confirmed this trend during the Nickel Institute Seminar at LME Week, indicating that Europe’s current scrap shortage and rising material costs have pushed producers to depend on the cheaper, more carbon-intensive Indonesian NPI. According to Jim Lennon, managing director of Red Door Research, from January to July alone, European imports amounted to 10,000 tons of nickel metal content.

The driving factor behind the shift is the increasing cost of raw materials combined with a scarcity of stainless steel scrap in Europe. Even as scrap prices drop, Eastwood does not foresee any immediate changes. He emphasized that only CBAM, the EU's effort to limit carbon leakage, will likely curb this reliance. In its trial phase, CBAM requires European importers to account for CO2 emissions linked to imported goods by purchasing emissions certificates, further affecting the industry’s sourcing strategies.

Industry Facing a Third Year of Decline

The European stainless steel industry continues to struggle. With demand expected to shrink for a third consecutive year in 2025, many flat producers are operating far below capacity. Acerinox, a Spanish producer recovering from a five-month strike, has also committed to using NPI as feedstock. Despite the excess production capacity, profitability isn’t the issue, according to Eastwood. “The problem is excess capacity," he said. Even Acerinox’s market absence barely impacted ferro-nickel sales.

By mid-2025, Eastwood anticipates demand recovery, driven by improved macroeconomic conditions and relaxed monetary policies. However, he highlighted industry criticisms of CBAM, particularly its exclusion of scope 3 emissions and its perceived role as a protectionist policy. "There are many holes in CBAM," Eastwood noted, pointing out inconsistencies such as the inclusion of ferro-nickel but the omission of refined nickel.

Future Projections for Nickel and Freight Costs

Anglo American forecasts the class 1 nickel market to hold surpluses in the coming years, while the class 2 market, including NPI and ferro-nickel, remains balanced or tight. Eastwood predicts stable nickel prices on the London Metal Exchange (LME) through 2025, dismissing any expectations of price spikes. Additionally, high freight costs are likely to limit imports of finished stainless steel into Europe next year, further weighing on the industry.

Venture Metals Expands US Footprint with Strategic Acquisitions

Venture Metals

Acquisition of Thalheimer Bros and Mega Metals Bolsters Nonferrous Capabilities

Venture Metals has acquired Thalheimer Brothers and its subsidiary, Mega Metals. This strategic move significantly expands Venture's nonferrous recycling operations. The acquisitions add processing facilities in Philadelphia, Pennsylvania, and Phoenix, Arizona. These locations complement Venture's existing plants in Texas, Illinois, and South Korea. Mega Metals, specializing in titanium scrap, brings a critical new capability. 

This acquisition includes titanium 6-4 turnings, approved for aerospace reuse. Thalheimer Brothers strengthens Venture's position in stainless steel, copper, and aluminum recycling. They also handle nickel-based alloys and high-temperature metals. Rich Reiner will continue as CEO of both Thalheimer and Mega. Venture Metals aims to enhance its market presence in the US.

Titanium Expertise and Market Expansion

Mega Metals' focus on titanium scrap is a key asset. They are approved to handle titanium 6-4 turnings for aerospace. This includes 6-4 bulk weldable and 6-4 feedstock. They also process "ferrous" grades for ferro-titanium production. This serves both US and European markets. This expansion signifies Venture Metals' commitment to specialized metal recycling.

MTM Critical Metals Recovers High-Grade Antimony from E-Waste Using FJH Technology

MTM Critical Metals

Breakthrough in Antimony Recovery from E-Waste

Australia’s MTM Critical Metals has successfully recovered high-grade antimony from electronic waste using its proprietary flash joule heating (FJH) technology. Antimony, classified as a “critical mineral” by the US Geological Survey, is widely used in flame retardants, military applications, and lead alloys for batteries and cables. The breakthrough positions MTM to expand its US operations as it evaluates which metals to target for commercial recovery at scale.

The company has already secured a pre-permitted demonstration site in Texas and plans to commission the plant by December 2025, with commercial production starting in 2026. This facility builds on MTM’s prior work in gallium recycling, first announced last year, and reflects the growing demand for advanced recovery solutions to secure critical mineral supplies.

Scaling US Operations with Strategic Partnerships

MTM has secured long-term agreements totaling 1,100 tonnes per year of e-waste feedstock. This includes a five-year deal with Dynamic Lifecycle for 700 tonnes per year of e-scrap. The company is also seeking government funding to support its US expansion.

The proprietary FJH technology, exclusively licensed to MTM’s US subsidiary Flash Metals USA, was originally developed at Rice University in Texas. It rapidly heats material in a controlled chlorine atmosphere, achieving high-purity recovery of target metals. Earlier trials demonstrated strong results in recovering gallium from LED manufacturing scrap, and the company now aims to replicate that success for antimony and other critical minerals.

The Metalnomist Commentary

MTM’s progress underscores how proprietary recovery technologies can reshape critical mineral supply chains. With antimony supplies dominated by China, domestic recovery from e-waste could reduce US import dependency and enhance supply security. If scaled effectively, MTM’s Texas facility could become a strategic hub for recycling high-value metals.