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| Boeing 737 MAX |
Titanium scrap demand strengthens as Boeing’s 737 MAX build rate stabilizes at 38 per month. However, sustained demand requires consistent quality and predictable regulatory conditions. Boeing now targets 42 per month later this year as processes normalize. Meanwhile, tighter controls after 2024 incidents improved quality but slowed upstream shipsets.
Production recovery supports titanium-intensive widebodies
Production recovery at “rate 38” underpins steadier titanium revert flows from machining. As a result, mills and recyclers can plan melt schedules with fewer disruptions. Boeing lifted 787 output to seven per month, reinforcing widebody momentum.
Furthermore, widebodies consume roughly double the titanium of narrowbodies.
The 787 contains about 15% titanium by weight, supporting long-product demand.
In contrast, the 737 MAX uses about 6–7% titanium, industry estimates suggest.
Meanwhile, early 777-8 freighter build activity implies even higher titanium intensity.
Pricing, flows, and regional implications for recyclers
Scrap traders expect firmer bids for clean titanium turnings and solids. Consequently, certified revert suitable for aerospace grades may command wider premia. Fastmarkets’ ferro-titanium assessments often reflect scrap tightness and melt costs. However, broader LME complex moves still influence alloying cost and spreads. Ports and processors in the US, EU, and Japan report steadier intake rhythms. In contrast, Southeast Asia brokers see improved throughput for sorted turnings. India’s recyclers monitor billet and ingot demand as aerospace orders normalize.
Deliveries and backlog signal durable titanium consumption across platforms and tiers. Specifically, quarterly deliveries rose to 150 aircraft, with backlog above 5,900. Moreover, revenue improved while losses narrowed, easing supplier credit stress. However, trade frictions still matter for cross-border components and subassemblies. Zero-for-zero aerospace tariff deals reduced cost risk with the UK, EU, and Japan. Yet gaps with Italy and ongoing USMCA talks keep logistics and duties uncertain. Therefore, a predictable policy setting remains critical for scrap flow stability.
ScrapInsight Commentary
We expect titanium scrap demand to firm as 787 output ramps and 737 MAX stabilizes. However, premiums will favor clean, certified revert with reliable chemistry and traceability. Traders should secure multi-quarter offtake with melt shops and hedge via FeTi benchmarks. Finally, monitor FAA caps, tariff gaps, and labor risks for potential volatility shocks.
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