![]() In terms of the shorter term, we only have to look at the price increase of hafnium in 2022 (+170%!) to realize that strategic metals not dependent on China’s export policies can be subject to significant price spikes as short-term demand increases (in hafnium’s case, from the aerospace industry). This conclusion is largely and understandably attributed to space exploration becoming a fully-fledged space industry between now and 2050. Many will not be surprised if the price of rhenium goes on a run for the next 5 to 10 years. The price of this strategic metal rose by 24% last year (see table above), and industry experts predict this trend will continue. The supply side is already contracted, as recycling isn’t cost-effective at current prices, while Chile’s political unrest in recent years is well documented. ![]() However, with the airline industry recovering after the downturn and military budgets increasing across the globe, the demand for aircraft engines started to pick up and will grow significantly. Rhenium is the only one of the strategic metals we sell that had decreased in value between the start of this decennium and the start of 2023, driven by the lack of new orders for aircraft engines during the COVID years. Regarding a price forecast, rhenium’s upside potential looks significantly higher than any downside potential in the medium term. So there’s still a significant dependency on one region in the supply chain. However, Chile is by far the largest producer (49% of global in 2021) because that’s where the majority of porphyry (volcanic) copper ores are mined. Recycled rhenium now accounts for about 35% of the total annual supply.Ĭhina isn’t a constraining factor on the supply side of rhenium (they only produce to meet their own domestic demand). However, several rhenium scrap recovery operations closed in recent years as they were no longer cost-effective. This led to a gradual price decline below $2,000 in 2021, as recycled materials increased worldwide supply by 50%. ![]() Incentivized by these high prices, methods were discovered to recycle rhenium from used super alloys and re-use them in new melts. Prices gradually increased again to a peak of $12,000 / kg in 2008 from combined demand for aircraft engines and gas turbines. Prices dropped to lows of $300 / kg in 1996 when new supplies from the East entered the market after the collapse of the Soviet Union. Prices peaked over $3,000 / kg in 1980 as new US and European clean air laws increased demand for high octane lead-free gasoline. Over the past 40 years, the demand for rhenium has been driven primarily by the aerospace and energy sectors. With more research about rhenium occurring every day, no doubt there will be new future applications for this powerful element. It does have several other industrial uses, such as lamps for cinema projectors. In addition, rhenium plays an essential role as an additive in catalysts for more efficient fuel combustion in power plants and oil refineries. ![]() In medical research, rhenium is used as a radiopaque agent to more easily identify tumors or other lesions in CT scans and for localized cancer therapy. Its softness allows rhenium to be used in electronic components such as electrodes and contacts. It is often added to tungsten-based alloys to make them even stronger, and these “super-alloys” contain about 6% of rhenium. Its high melting point and strength make rhenium ideal (and un-substitutable!) for use in jet and rocket engines, wind turbine blades, and combustion chambers. Its unique features have caused rhenium to be used in many different areas, from military and aerospace technology to medical research. Strategic Metals Performance vs Stocks and Gold.Strategic Precious Metals Prices & Forecasts.What Metals to Own Today (video reviews).Benefits of Investing in Strategic Metals. ![]()
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