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