What Drives Ferrotitanium Prices: Feedstock, Energy and Demand

How Ferrotitanium Is Quoted

Ferrotitanium is a titanium-bearing additive for steel and cast iron, traded in grades that carry different titanium contents. FeTi30, FeTi40 and FeTi70 cover most of the market, with FeTi70 holding the 65-75% titanium range used where a precise, low-mass addition is needed. Quotations are expressed either per kilogram of alloy or per kilogram of contained titanium, and the two are not interchangeable, so a purchase comparison must normalise to contained titanium before any price is compared. Because the contained titanium is what does the work in the melt, the relevant figure for a cost calculation is cost per kilogram of titanium recovered, not cost per tonne of purchased material.

Feedstock Costs: Ilmenite, Rutile and Scrap

Titanium units enter the ferrotitanium chain from three sources, and their availability sets the floor under the alloy price. Mineral sands supply ilmenite, a mixed iron titanium oxide with a titanium dioxide content typically between 45% and 60%, and the higher-grade rutile fraction at roughly 92% to 96% titanium dioxide. Titanium sponge, produced from titanium tetrachloride by magnesiothermic reduction, and clean titanium scrap and turnings provide the higher-purity feed for premium grades. When mineral sand supply tightens, premium grades feel it first because producers shift toward the lower-cost feed, and when aerospace scrap generation falls, the high-purity grades become the tightest part of the market.

Energy, Aluminium and Reduction Costs

Most ferrotitanium is made by aluminothermic reduction, in which titanium oxide in the feedstock is reduced by aluminium, generating enough heat to keep the reaction self-sustaining and producing a molten alloy that separates from the alumina slag. The economics therefore track aluminium metal prices almost directly, and the aluminium content of the finished alloy becomes a quality parameter that the steelmaker must account for. Electricity and electrode costs add a second layer for plants that remelt or refine, and carbon-related compliance costs in regions with emissions trading add a third. When aluminium prices rise, ferrotitanium quotations follow within a shipment cycle even if titanium feedstock is unchanged.

Logistics, Trade Policy and Currency

Ferrotitanium is a low-density, bulky material, so ocean freight per tonne of contained titanium is high and container availability has an outsized effect on delivered cost. Trade measures matter as well: export licensing for titanium-bearing scrap and residues, antidumping or countervailing duties in destination markets, and carbon border adjustment mechanisms that price the embedded emissions of imported alloy. Currency movement between the producer's cost base and the buyer's purchase currency adds a final layer that can exceed the change in the underlying market over a single quarter.

Demand from Aerospace, Medical and Additive Manufacturing

Titanium metal has an unusual combination of specific strength and corrosion resistance, and demand for the alloy piggybacks on that. Wrought titanium alloy Ti-6Al-4V is specified as Grade 5 under ASTM B265/B265M with a minimum tensile strength of 895 MPa and a minimum yield strength of 828 MPa, and additive manufacturing of the same alloy in powder bed fusion is covered by ASTM F2924. Growth in airframe programmes, in medical implants and in powder-based manufacturing pulls titanium units away from the ferrotitanium pool. Ferrotitanium itself is used in steels and cast irons as a deoxidiser, a grain refiner, a carbide former and an alloying addition for heat-resistant and creep-resistant grades, and in welding consumable production.

How Buyers Manage Ferrotitanium Cost

The practical levers are grade selection and process control. Where titanium is added mainly as a grain refiner or a deoxidiser, the cheaper FeTi30 or FeTi40 grade usually performs the duty at lower cost per tonne of steel. Where the addition must be small and accurate, FeTi70 reduces handling volume and limits the aluminium and silicon that enter the heat. Purchasers who fix a maximum aluminium content, control the size fraction to match their addition method, and test recovery heat by heat generally find more savings than those who simply chase the lowest quotation.

Frequently Asked Questions

Q: Why does ferrotitanium cost more per unit of titanium than Ti scrap?
A: Ferrotitanium is a processed, graded, size-controlled product with a defined titanium content and low variability. Scrap carries unknown chemistry, surface contamination and shape problems that reduce recovery and add handling cost.

Q: What does FeTi70 mean?
A: The number indicates the nominal titanium content in percent, so FeTi70 contains approximately 70% titanium, in the 65-75% band used for precise trim additions.

Q: Does aluminium content matter in the purchase decision?
A: Yes. Aluminothermic ferrotitanium carries residual aluminium, and that aluminium enters the heat. Where the steel grade has a tight aluminium limit, the alloy specification must be set accordingly.

Q: Which grade suits cast iron inoculation?
A: The lower grades, FeTi30 and FeTi40, are normally adequate where titanium acts as a graphitising or carbide-stabilising addition. The higher grades are reserved for cases where a small addition mass is important.

Q: What is the fairest way to compare two quotations?
A: Convert both to cost per kilogram of contained titanium, then adjust for recovery, size fraction, aluminium content and delivered freight. Comparing price per tonne of alloy alone distorts the decision whenever the grades differ.