Niobium prices have been fluctuating in recent years, making it difficult for investors to predict the cost of this rare metal. This blog post will explore what you need to know about niobium prices, including the factors influencing them and how they may affect your business. By understanding the nuances of the Niobium market, you can make informed decisions when it comes to purchasing or selling this valuable metal.
Table of Contents
History of Niobium
Niobium, also known as Columbium, is a chemical element first discovered in 1801 by a scientist, Charles Hatchett. It wasn’t until the 1950s that Niobium began to be used industrially due to its unique properties. It is now commonly used in alloys to improve the strength and resistance of steel. It’s also a popular metal in electrical applications due to its superconductive properties. Because of these ever-increasing industrial and commercial applications, niobium prices have risen significantly over the years.
Niobium Prices
Niobium prices have been subject to much volatility in recent years. From 2010 to 2017, the price ranged from $45 to $90 per kilogram, up from an average of $30-$50 per kilogram to an all-time high of $180 per KG in 2019. Niobium prices are heavily influenced by factors like:
Market Behaviour
Increasing market demand for Niobium pushes the standard prices up, while decreased demand reduces niobium costs. The market demand for Niobium is often fueled by technological changes that result in increased niobium applications and shifts in global economic conditions affecting capital availability among investors.
Niobium prices are also affected by market size. Because the niobium market is relatively small, the actions of a small number of producers, consumers, and investors can easily influence standard prices.
Economic Conditions
Economic fluctuations affect niobium prices because the metal is primarily used in the industrial sector. An economic downturn, for instance, can potentially lead to decreased demand and niobium costs since most investors will limit their spending. On the other hand, an economic boom increases the spending power of most manufacturers, leading to increased Niobium demand and costs.
Production Costs
While it has various unique properties, Niobium is difficult to obtain. It’s mined using a complex process, increasing production costs and prices. Note mining costs largely depend on the location and the mining method. It is worth noting that environmental regulations surrounding mining tend to raise mining costs, resulting in high niobium prices.
Niobium is a rare metallic element primarily mined in Brazil and Canada. It is a critical component for high-end steel alloys and is also used in aerospace. The cost of Niobium has fluctuated dramatically over the past few years, largely due to production issues in Brazil.
In 2020, Brazil experienced a shortage due to mine closures and safety regulations, causing increased Niobium prices. Fortunately, as of 2021, prices had stabilized due to new mining operations meaning overall Niobium costs are set to remain steady in the near future.
Substitutes
Although Niobium has many industrial uses and unique properties, there are also plenty of substitute metals. For example, titanium is a Niobium alternative in aerospace and defense applications, while tantalum can substitute in the electronic space. When the cost of these substitutes decreases, Niobium demand also declines as manufacturers always look to reduce costs. This affects overall supply and demand, resulting in reduced Niobium costs.
Conclusion
Niobium prices are influenced by various external factors, from the basic supply and demand, to substitute availability. Understanding these factors is the key to making informed investment decisions regarding this precious metallic element.
