Niobium Prices Explained

Niobium prices posted increasing trends as the market saw robust demand for high-strength and lightweight materials in aerospace, automotive, and construction applications. Also, the need for sustainable metal solutions drive the commodity’s market because of its excellent corrosion resistance and high-melting point properties. 

The construction industry is the largest consumer of niobium (approximately 90% of the commodity is used in high-strength low-alloy (HSLA) steel production). The market will benefit steady demand from the U.S., China, India, and Indonesia. 

Moreover, EV innovation will need huge amount of niobium in next-generation lithium-ion batteries. This application will provide numerous opportunities to niobium market. 

Why are niobium prices fluctuating?

1. Demand from Top Industry Consumers

The construction sector has the capacity to fuel niobium prices. This metal is important for plate products such as constructing bridges, viaducts, and high-rise buildings.

For instance, Canada’s government funded projects (Affordable Housing Initiative) and the EU Recovery Fund will boost North American and European niobium markets.

Additionally, the aerospace industry uses niobium alloys and metal for heat-resistant parts. Furthermore, the automotive industry also demands niobium for manufacturing high-performance engines and lightweight parts for electric vehicles.

Thus, the growing need from these industries drives niobium prices up.

2. Limited Supply Sources

Niobium supply comes from a few producers.

Companhia Brasileira de Metalurgia e Mineração (a Brazilian company) currently holds the title of the world’s largest niobium producer, accounting for 85% of global production.

Canada tops as the second producer. However, it only contributes 7%-10% of the world supply. While Brazil boosts its metal production, its reserves continuously deplete.

Additionally, some niobium deposits are located in the Amazon rainforest. This sparks debate among mining companies, investors, and environmental regulators, creating a shift in the supply chain.

Thus, these contested mining operations impact niobium production, leading to an increase in its prices.

3. Production Inputs

The production of niobium involves several inputs such as labor, energy, and raw materials. Any increase in the cost of these inputs leads to a surge in niobium prices.

For instance, niobium production requires 45% of energy consumption. If energy prices rise, it becomes more expensive to mine and process niobium, resulting in higher prices for the end product.

Which variables impact the price of niobium?

• Demand from Top Industry Consumers
• Limited Supply Sources
• Production Inputs
• Supply Chain Problems
• Environmental Regulations

Where does niobium come from?

Niobium is a rare metal with hardness characteristics similar to titanium and ductility to iron.

Pyrometallurgy is the process of producing niobium. This step covers heating niobium-containing ores to high temperatures to extract the niobium.

1. Mining – Niobium is mined from ores such as pyrochlore and columbite.

Typically, these ores are found in igneous rocks. Niobium mining is complicated as the ores are often low-grade and contain other valuable minerals such as tantalum and titanium.

2. Concentration – After mining, the ore is concentrated to increase the niobium content. This is done by crushing and grinding the ore.

The next process is gravity separation. The flotation technique uses chemicals to separate different minerals based on their hydrophobicity (water-repelling properties). Furthermore, gravity separation uses the different densities of minerals to separate them.

3. Roasting – The concentrated ore is roasted to remove impurities such as sulfur and carbon. The required furnace temperature is around 700-800 degrees Celsius.

4. Reduction – The roasted ore is reduced with carbon or aluminum to produce niobium carbide or niobium ferroalloy. Generally, the reduction process needs around 1500-1600 degrees Celsius.

5. Refining – Next, the niobium carbide is refined to produce niobium metal. Most manufacturers use any of these two methods:

Vacuum arc melting is about melting the niobium carbide or niobium ferroalloy in a vacuum furnace.

Electron beam melting involves melting the niobium carbide or niobium ferroalloy with a focused beam of electrons.

6. Processing – After refining, the metals are processed into various forms. Common niobium forms are ingots, sheets, plates, and rods. These metal shapes are used in aerospace, superconductors, and medical devices.

What are the uses of niobium?

Due to its extremely high melting point and excellent flexibility, niobium finds its place in these top industries:

1. Steelmaking – Between 85% to 90% of niobium directly goes into producing steel and iron as ferro-niobium. Adding 0.03% to 0.05% of niobium to the steel will increase its yield strength by 30%. Thus, this metal increases steel’s strength, toughness, and high-temperature oxidation resistance.

2. Superconducting Materials Industry – Specific compounds and alloys of niobium possess extremely high superconducting temperature transitions. They are employed in producing many industrial superconductors such as superconducting generators, storage devices for magnetic energy, and radiofrequency imaging devices.

3. Aerospace Industry – High-purity niobium is used in rockets, spacecraft engines, and other heat-resistant parts. The heat-strength alloys of tantalum and niobium have excellent heat-strength and heat-resistance processing properties.

4. Atomic Energy Industry – Niobium is a good conductor of heat and has a high melting point. Niobium is an excellent material for reactors that use atomic energy.

5. Electronics Industry – Niobium-based materials show great potential in supercapacitors (SCs) and hybrid ion capacitors (HICs) because of their unique crystal structure, fast ion diffusion ability, and excellent chemical durability.

Generally, this multi-faceted metal comes from Brazil, Canada, the Democratic Republic of Congo, Russia, and Australia.

What is the future price of niobium?

Metal experts forecasted a bullish niobium price in 2030, amounting between $50 and $70 per kilogram. These are the following indicators:

Indian and Indonesian infrastructure – These countries slowly emerge as the top niobium consumers as their governments take various approaches to ensure a timely and strong infrastructure development.

India focuses on stabilizing its road development, housing, and airport construction and Indonesia’s new city capital and smart city projects will expand its market in Asia.

China’s electric vehicles – The increasing production and sale of the country’s EVs mean greater demand to balance. China replaced the use of vanadium from niobium in their electric cars to speed up production.

Japan’s electronics industry – The country leads as the major producer of video cameras, compact discs, computers, and photocopiers. All of which heavily rely on niobium.

Thus, the accelerating demand for this metal from the Asian market will largely contribute to niobium prices in 2030.