Tantalum Market Update (September 20, 2012)

The prices for tantalum are rising and as that happens the gap between the prices of primary and scrap metal is reportedly closing. Prices on the spot market are reportedly holding strong above $120/lb and ranging up to $130.

Last month the Securities Exchange Commission(SEC) finalized conflict minerals rules mandated by Dodd-Frank. This is believed to be a a significant driver of current prices as users are now displaying a renewed concern for securing conflict-free supply. The appetite for scrap tantalum is also attributed to this latest development, as that category of metal is treated leniently under the new rules.

Still market participants may want to consider whether increases are justified. Ahead of the SEC decision, demand was weak and global economic conditions are not readily improving. While some report a tightness in supply, there are others who dispute those claims.

Through July, data shows that Chinese imports of tantalum-niobium concentrates fell 11.54 percent and prices were down by over 13 percent compared to the same period last year. China’s unwrought tantalum exports were down 1.41 percent for the seven month period, while prices rose over 26 percent. However, just looking at July, unwrought tantalum exports dropped over 35 percent while export values plunged by over 30 percent.