AM Insight: Tantalum concentrate import prices will continue to rise in Q3
2012-06-28 09:23:53 [Print]
BEIJING (Asian Metal) 28 Jun 12 – With the increasing demand from the downstream industries and the tightening supply, tantalum concentrate prices increased from USD85-90/lb CIF China after the Spring Festival Holiday to USD100-102/lb CIF for the time being. Although there are some participants saying that demand from the consumption field is still dim, while demand from the investment field is strong. At the same time, Chinese economic stimulus policies will also push up domestic tantalum metal demand. Asian Metal predicts that tantalite import prices will continue to go up in Q3.
From the early beginning of 2012, the Wodgina mine in Australia closed again after it recovered only for one year’s time. As the tantalum concentrate production cost in Wodgina mine is about 80-90% higher than that of in African countries, China hardly imports raw materials from Australia because China is the mainly producing the low-end products. However, the close still deteriorated the international tantalite market, which badly affected Chinese import market.
In early June 2012, the Ethiopian government stated that they halt the explore and the export of tantalum concentrate from then on and revealed that they will establish their own tantalum and niobium processing plants. In addition, they basically set an establishing plan provided that the government will invest 70% of the cost and 30% will be financed by personals. According to the China Customs, China yearly imports about 250-300t of tantalum concentrate from Ethiopia, and this plan will cause Chinese import of tantalum concentrate from Ethiopia less even becoming zero.
The global economy is still in gradual rebounding, electrical products consumption is also increasing accordingly, especially the high-end and high tech products, which are represented by Apple, although the macro-economy is still on the whole. It is reported that the Apple Company’s revenues increased by about 6 times in the first half year of 2012. The rigid demand highlights the tight raw materials supply.
From January to April 2012, tantalum and niobium wrought material demand from both markets at home and abroad keeps dim. While in May, the consumers began to place orders to the limit of their capacity, which indicated that the demand from the end-stream industry was increasing. Till June, most of the processors are out of stocks, and they are now willing to take purchase.
The decreased supply and the gradually increasing demand, support the tantalum concentrated prices to continue to go up. Asian Metal predicts that in Q3, the tantalum concentrate import prices will keep the uprising trend.
From the early beginning of 2012, the Wodgina mine in Australia closed again after it recovered only for one year’s time. As the tantalum concentrate production cost in Wodgina mine is about 80-90% higher than that of in African countries, China hardly imports raw materials from Australia because China is the mainly producing the low-end products. However, the close still deteriorated the international tantalite market, which badly affected Chinese import market.
In early June 2012, the Ethiopian government stated that they halt the explore and the export of tantalum concentrate from then on and revealed that they will establish their own tantalum and niobium processing plants. In addition, they basically set an establishing plan provided that the government will invest 70% of the cost and 30% will be financed by personals. According to the China Customs, China yearly imports about 250-300t of tantalum concentrate from Ethiopia, and this plan will cause Chinese import of tantalum concentrate from Ethiopia less even becoming zero.
The global economy is still in gradual rebounding, electrical products consumption is also increasing accordingly, especially the high-end and high tech products, which are represented by Apple, although the macro-economy is still on the whole. It is reported that the Apple Company’s revenues increased by about 6 times in the first half year of 2012. The rigid demand highlights the tight raw materials supply.
From January to April 2012, tantalum and niobium wrought material demand from both markets at home and abroad keeps dim. While in May, the consumers began to place orders to the limit of their capacity, which indicated that the demand from the end-stream industry was increasing. Till June, most of the processors are out of stocks, and they are now willing to take purchase.
The decreased supply and the gradually increasing demand, support the tantalum concentrated prices to continue to go up. Asian Metal predicts that in Q3, the tantalum concentrate import prices will keep the uprising trend.
Tantalum Conc. Ta2O5 30%min in warehouse Rotterdam
Unit:USD/lb Ta2O5
China tantalum metal producers' inventory to production ratio statistics by province by month
Unit: %
