Germanium and Rhenium Prices Take Off

July 2024 | Marktet Insights

Close-up view of a turbine

Source: iStock/the_guitar_mann

The prices of germanium and rhenium have been rising for months. In July, this trend picked up the pace. TRADIUM experts analyze possible reasons for the upward market movement.

Germanium: The Highest Prices in Recent Memory

The price of germanium varied significantly last year, and the trend continues. Germanium is becoming substantially more expensive, mainly due to export restrictions imposed by China last summer.

The government-mandated stockpiling of important raw materials in China, one of the most important germanium producers, has led to a market shortage, says Matthias Rüth, Managing Director of TRADIUM GmbH. Last summer’s export controls further reduced the availability of Chinese germanium on the international market.

“Global demand for germanium is increasing, especially in the infrared industry, which requires the metal for night-vision devices,” explains Rüth. “Companies with large stocks of germanium are holding them back and waiting to see how the market develops, which is driving prices up further.”

Early in 2024, management consultancy Deloitte forecasted a supply shortage for the year. This prediction has come to pass.

Price of Rhenium at an Eight-Year High

The price of rhenium has also risen sharply and is now at a level last seen in 2016. In July alone, its price rose by 15 percent.

The price pattern for rhenium was previously seen with hafnium. Both technology metals are essential in the aviation industry, particularly in creating alloys for turbine blades and turbine housings that increase heat resistance and performance. Using these alloys leads to lower kerosene consumption in aircraft and higher energy efficiency in gas or steam turbines.

 

 

Price charts for germanium, rhenium, hafnium, and other raw materials are available on our website and are updated regularly.

Industry sees the increased demand for superalloys for turbine engines and catalysts in oil refineries as reasons for the price surges. Turbines and catalysts are among the most important applications for the raw materials.

“Given hafnium’s price increase last year, a similar development for rhenium comes as no surprise,” says TRADIUM technology metal expert Frank Meier. “Industry demand for the metals is continuously rising, and so far, there are no substitution metals in sight.”

Global production of the two technology metals is also highly concentrated. Forty-five percent of hafnium is produced in France and 41 percent in the US. Chile accounts for 50 percent of rhenium, while the US and Poland each contribute around 15 percent.

The Fraunhofer Institute for Systems and Innovation Research expects demand for rhenium to double by 2040. The aircraft manufacturers Airbus and Boeing recently noted that air traffic picked up enormously after the end of the coronavirus pandemic and anticipate a need for more than 40,000 new aircraft over the next 20 years. This potential growth should continue to drive demand for rhenium and hafnium and keep the market moving.

You can learn more about large price movements in comparatively small raw material markets in our article on volatility.

 

Close-up view of a turbine

Source: iStock/the_guitar_mann