Rhenium Market: Price Development and Current Situation

The price of rhenium rose significantly in the summer of this year. An eight-year high was reached in August. After stagnating, the price fell back to its July level in September and has remained relatively stable since then. How can this volatility be explained?

According to Frank Meier, the technology metals expert at TRADIUM, the price spike in summer of 2024 was largely driven by the industry’s large-scale rhenium purchases aimed at securing long-term supply and building stockpiles.. This created a chain reaction: once the first buyers began placing large orders, other market participants quickly followed suit. As a result, producer stocks were nearly depleted, pushing prices to a record high.

Raw material producers have responded to the increased demand and adjusted their business activities in recent weeks with the result that more rhenium is now available on the market again, Meier continues. This has resulted in a new price equilibrium, which, while lower than the summer peak, remains above pre-surge levels.

The rhenium market is relatively small, with only about 56 tons produced worldwide in 2023, according to the U.S. Geological Survey. As such, shifts in demand can lead to much more pronounced price changes compared to metals with larger market volumes.

Rhenium: Indispensable Raw Material for the Industry

Rhenium is a rare and valuable metal used across various industrial applications due to its high melting point and exceptional corrosion resistance. It is particularly important in the aerospace industry, where it is used in nickel superalloys for engine turbine blades. These alloys must withstand extreme temperatures and mechanical stresses. Rhenium also plays a key role as a catalyst in the chemical industry, particularly in the production of high-quality gasoline and other petrochemical products.

You can learn more about price fluctuations in comparatively small raw materials markets in our article on volatility.