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US titanium mills
US titanium mills are adapting to growing cost pressures triggered by recent tariff changes in the United States. Following the Trump administration’s 10% baseline import duty, mills now face higher input costs, despite limited exemptions.
Leading Producers React with Diverging Strategies
Major players such as Howmet Aerospace and ATI are implementing different responses. Howmet issued a force majeure notice for contracts impacted by tariffs, signaling potential supply disruptions. ATI responded with immediate price hikes, warning customers about rising production costs.
Meanwhile, Perryman and Timet have adopted a wait-and-see strategy, delaying operational adjustments until policy clarity improves. This divergence highlights industry-wide uncertainty on how tariffs will impact procurement and margins.
Alloying Inputs Remain Exposed, Intensifying Risks
Although certain titanium feedstocks and semi-finished products are exempt, vanadium pentoxide and other critical alloying elements remain subject to tariffs. This exposes aerospace-grade titanium to cost spikes, forcing producers to reassess sourcing and pricing.
ATI emphasized that tariffs will “significantly raise the costs to produce material,” requiring pricing adjustments. Howmet hinted at cost-sharing with customers, but acknowledged the risk of broader disruption.
Downstream Volatility and Market Implications
The aerospace supply chain now faces heightened volatility in input pricing. ATI and Howmet are exploring alternative sourcing to mitigate the ripple effects. In contrast, Perryman’s cautious stance reflects the global industry's concern over reciprocal trade actions.
It remains unclear how much of the tariff cost will be passed on to buyers. Both suppliers and customers must navigate a shifting economic environment shaped by trade policy and material sourcing dynamics.
ScrapInsight Commentary
The titanium tariff dilemma underscores the fragile balance between national trade policy and industrial cost structures. Expect further supply chain reorganization and pricing realignment, especially in aerospace-grade titanium feedstock and scrap recovery channels.
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