The price of rhenium has risen sharply in recent months - triggered primarily by growing demand from China. The USA is reacting and planning to reclassify the raw material as critical.
The Rhenium price jump in the past weeks and months is primarily due to the Increased demand from China to this. The country is currently expanding its state-subsidised aircraft industry and has acquired large quantities of rhenium for this purpose, which is used in the form of alloys in aircraft turbines. Another price driver is the upcoming elections in Chile, where the Mining a central topic is. The South American country is one of the largest copper producers in the world. Molybdenum is a by-product of copper mining - and molybdenum extraction in turn produces Rhenium. Chile therefore plays a key role in the global supply of the latter.
As the market is characterised by a primary Annual production of around 62 tonnes is extremely manageable, even small changes in demand have a noticeable effect on the supply situation and the price.
China expands rhenium stock, further areas of application are added
The People's Republic favours its own Chinese products in other industries, which is why, according to TRADIUM's rhenium expert Frank Meier, this can also be expected in the aviation sector. "It is to be expected that China will strengthen its aviation industry in the long term and, as with rare earths, will also pursue a strategic agenda for rhenium," Meier continues. A decline in demand is therefore unlikely. On the contrary: demand for the Chinese aviation industry will continue to rise in the future.
Demand is also growing outside China: Airbus and Boeing, for example, are forecasting demand of more than 40,000 new machines in the next 20 years. New fields of application are also emerging, such as in the modern medical technology.
Substitution remains unrealistic
There is no technological alternative to rhenium in aviation. "There are no real opportunities for substitution in alloys that are used in turbine blades and housings. Doing without rhenium there would mean a considerable step backwards in terms of quality," says Meier.
Politicians and the market react to the current situation
The US Geological Survey (USGS) has discovered rhenium in the Draft of his new list of critical minerals recorded. This means that the raw material is now considered critical again after not being included in the two previous lists for 2022 and 2023. In principle, the USGS list already since 2018Rhenium was represented on the first list. The EU Critical Raw Materials Act (Critical Raw Materials Act), which came into force in 2024, does not include rhenium among the raw materials that are of central importance to European industry.
Frank Meier is aware of this development: "In the USA, the market situation for rhenium has already been recognised and the raw material has consequently been reclassified as critical. It is to be expected that Brussels will follow the USGS categorisation and also include rhenium on its list of critical raw materials."
Market remains tense
The rhenium expert is sceptical when asked whether further sources of the limited raw material can be tapped in the near future: "For the time being, no further producers are expected on the market. However, existing suppliers are optimising their utilisation rates in order to extract even more rhenium from the rock. Recycling is also becoming increasingly attractive and is being further expanded in order to obtain the sought-after raw material," explains Meier.
However, these measures are not enough to cover the rising demand, and a market deficit will remain for the foreseeable future. For politicians and industry, this means Security of supply and recycling strategies continue to take centre stage.
