Market Research Report
Niobium: Global Industry, Markets & Outlook - 13th Edition
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Approximately 90% of all niobium used is consumed as ferroniobium in steelmaking. The rest goes into a wide range of smaller-volume but higher-value applications, such as high-performance alloys (which include superalloys), carbides, superconductors, electronic components and functional ceramics.
Almost all ferroniobium supply is from three industrialised producers in Brazil and Canada and derives from the mineral pyrochlore. Little, if any, pyrochlore enters international trade. Niobium for non-steel applications is typically from other minerals (columbite, columbite-tantalite etc.) that are mostly produced by artisanal mining in Africa and South America. The supply bases for niobium used in different markets are thus very different.
In steel, niobium is used as ferroniobium, mainly in the production of high-strength, low-alloy (HSLA) steels for the construction, automotive and pipeline industries. It is also used in certain types of stainless steel. Although the unit consumption is very small - fractions of a percent by weight of a tonne of finished steel - the benefits are large. Niobium addition makes steel much stronger, so less steel overall is required, which can reduce cost greatly. This has been the basis for the development and growth in the use of steels containing niobium over the last few decades and should be the driver in the years to come. Niobium intensity of use is low in several large, steel-producing nations, providing potential for an increase in niobium demand.
Niobium pentoxide (Nb2O5) is the starting product for most specialised non-steel applications. Nickel-based high-performance alloys are used in the aerospace industry, where high-temperature strength is required. Commercial niobium oxide products are generally termed high-purity (optical-grade) oxide to distinguish them from intermediate forms. Niobium is also produced as pure metal along with other niobium alloys typically containing titanium and zirconium. Niobium chemicals have a wide range of applications, e.g. in catalysts and functional ceramics.
Niobium prices are historically very stable. They moved little in the period up to about 2006, when a producer-driven doubling in prices began, and have remained stable at the higher benchmark. Ferroniobium prices, in particular, are fairly demand-inelastic, with the 2009 slump in demand from the global steel industry having only minimal impact on pricing. The outlook for prices is one of gentle but steady increase; spikes are unlikely.