Industry Overview

Niobium additions in steel significantly increases strength, so less steel is required overall, which can reduce cost substantially. This has been the basis for the development and growth in its use over the last few decades and should  remain the driver in the years to come.

Approximately 90% of all niobium is consumed as ferroniobium used in steelmaking. Besides ferroniobium, niobium is consumed in 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, two in Brazil and one in Canada. By far the largest is Companhia Brasileira de Metalurgia e Mineração (CBMM), which operates a pyrochlore mine and processing plant near Araxá in east-central Minas Gerais state in Brazil. While historically this company has operated comfortably below operational capacity, recent increases in demand translated into rising operating rates and prompted a 50% expansion, to be commissioned in Q1 2021. The other major producers, Magris Resources in Canada and China Molybdenum in Brazil are thought to be operating at close to capacity.