Titanium Scrap Demand and Prices Expected to Rise in 2025, Driven by Boeing Recovery and Melter Expansions

Titanium Scrap

The outlook for titanium scrap is becoming increasingly positive as demand is expected to surge in the second half of 2025. This rise is driven by a recovery in aerospace manufacturing, particularly from Boeing, and planned expansions in titanium melting capacity. These factors are expected to have a significant impact on the titanium scrap market, which has faced challenges throughout 2024.

Boeing and Aerospace Recovery

After a year marked by disruptions in production schedules and supply chain bottlenecks, aerospace manufacturers are expecting a rebound. In 2024, the anticipated increase in titanium scrap demand did not materialize as expected, largely due to production missteps at Boeing and delays in Airbus’s ramp targets. However, a recovery in Boeing's production, particularly of the 737 MAX and the 787 Dreamliner, is poised to fuel higher scrap consumption.

Boeing’s 737 MAX production, which was temporarily halted due to a seven-week strike, is set to resume, providing a strong signal for the titanium scrap market. The 787 Dreamliner, which contains about 15% titanium compared to 6% for the 737 MAX, will also contribute to increased demand. Despite facing parts shortages earlier in 2024, Boeing has indicated that it will resolve these issues by the end of the year, paving the way for normalized production rates in 2025.

Titanium Melters’ Expansions and Ingot Production

Another key factor influencing the titanium scrap market is the expansion of titanium melters’ capacity. With new ingot production facilities scheduled to come online in 2025, there is a clear indication that titanium melters will be looking to source more aerospace-grade scrap to feed their new furnaces. Companies such as ATI, Titanium Metals (TIMET), and Perryman are investing heavily in capacity expansions to meet growing demand for titanium products.

ATI’s expansion at its Richland, Washington, operations will increase melting capacity by 35% over 2022 levels, while TIMET’s new plant in Ravenswood, West Virginia, is expected to produce 33 million lbs of ingot annually once fully operational. Perryman, meanwhile, is ramping up its facility in Coal Center, Pennsylvania, increasing its melting capacity by 16 million lbs to 42 million lbs annually. These expansions are expected to create more competition for available titanium scrap, potentially driving up prices.

Impact of Tariffs and Political Uncertainty

However, the market remains uncertain due to potential changes in U.S. trade policies under President-elect Donald Trump. Trump’s proposed tariffs, which could impose duties of up to 60% on imports from China, 25% on imports from Mexico and Canada, and a 20% duty on all other imports, have raised concerns among market participants. Such tariffs would increase the cost of titanium scrap imports, particularly from regions like Europe and Japan, which could be devastating for the industry if they are implemented.

Titanium scrap imports to the U.S. have already increased significantly in 2024, reaching 23,578 metric tonnes through October, surpassing the previous year’s total. While the threat of tariffs remains uncertain, it could create additional market disruptions that would further complicate the scrap supply chain.

Conclusion

While 2024 proved to be a challenging year for the titanium scrap market, 2025 is shaping up to bring a significant rebound. The resumption of Boeing's production and continued expansions in titanium melting capacity should drive stronger demand for aerospace-grade scrap. However, political uncertainty surrounding tariff policies remains a major wildcard that could affect the broader market dynamics. As the industry braces for these changes, stakeholders are carefully watching for signs of recovery and growth.