What is Titanium Anode Mesh?

Before understanding the value of scrap, let’s first explore what titanium anode mesh is. Companies use titanium anode mesh extensively in the electrochemical industry, particularly in processes like electrolysis and electroplating. Manufacturers choose titanium as a base material for anode meshes because of its excellent corrosion resistance and conductivity. To meet specific industrial needs, they coat these meshes with precious metals or metal oxides, which offer high catalytic properties and resistance to corrosion. Common coatings include iridium, ruthenium, tantalum, platinum, and alloys like iridium-ruthenium or ruthenium-titanium.

Why is Scrap So Valuable?

The real value of titanium anode scrap lies in the precious metals that coat the mesh, such as platinum or ruthenium. Refiners can recover and reuse these metals, giving the scrap significant economic value. This recycling potential has driven up the demand for titanium anode scrap, particularly among buyers seeking to import it from China.

Why Is It Hard to Find Sellers in China?

The primary reason is the limited profit margin. Many companies hesitate to export unless buyers offer a price high enough to ensure adequate profits for intermediaries. If your sole aim is to extract precious metals, I advise reconsidering, as it may not be economically viable. Let’s break it down with a simple formula:

Profit = Sale price of extracted precious metals + Value of remaining titanium scrap – Cost of purchasing the titanium scrap – Refining costs

As you can see, sellers will only consider exporting if the buyer’s offer exceeds the profit that domestic refiners can make.

Let’s look at the situation more closely. In China, most companies capable of recovering titanium anode scrap also have the ability to refine precious metals, which they prioritize over exporting. However, due to the structure of the scrap trade, large companies often cannot source the scrap directly. Instead, small traders buy scrap at lower prices and resell it to large recycling companies at a markup. These small traders play a key role in the supply chain because they are often the only ones able to acquire the material directly. Tax and invoicing issues also come into play. If someone were trying to take money out of your pocket, would you willingly give it up? For this reason, small traders typically acquire scrap through informal channels and resell it to professional recycling companies.

For recycling companies, their costs consist primarily of the low price they pay for scrap titanium mesh and the refining costs, which include labor and chemicals. Since precious metal prices are relatively transparent globally, the profits from refining metals domestically far exceed the gains from exporting. This explains why it’s hard to find sellers in China. Unless your offer surpasses the profit domestic refiners can achieve, they won’t consider exporting the scrap.

If your goal is to buy titanium anode scrap purely to extract precious metals, it’s not a viable deal. Another reason for the scarcity is that some users of titanium anode mesh return their used mesh to manufacturers for a “trade-in” and have it refurbished for reuse. As a result, the scrap titanium anode mesh never reaches the market, contributing to its high demand.

A Real-World Example