Canada's Niobec mine in Quebec is continuing to produce niobium despite two weeks of strike action, but uncertainty over how long the strike will last and pre-existing tight supply are prompting sellers to hike offers in the ferro-niobium spot market.
An indefinite strike by 300 workers at Canada's sole niobium producer began on 1 May, aimed at securing wage adjustments to reflect the rising cost of living. Negotiations are under way, but there is no indication of when the dispute could be resolved, according to labour union Unifor communications representative Veronique Figliuzzi.
The strike has not had a major impact on operations so far, a source at Niobec told Argus, saying "we will continue to operate even at the low end of our guidance".
Niobec produced 7,100t of niobium in 2024, according to the US Geological Survey.
Niobec is one of only three niobium producers globally and supplies about 8pc of the world's demand, with most of the remaining production in Brazil, which accounts for approximately 92pc of global output.
Niobium is primarily consumed in the form of ferro-niobium by the steel industry and in niobium alloys and metal by the aerospace industry. The ferro-niobium market operates mainly using long-term contracts, but some spot enquires for small volumes were made this week. Argus' European ferro-niobium price assessment was unchanged yesterday at $46.50-47/kg duty unpaid Rotterdam, but offers were heard today at $47.25/kg.
The strike comes at a time of tightened spot availability over the past month, with major European suppliers reportedly sold out of prompt material.
"Suppliers like Niobec and the trading firm IXM — which has a long-term offtake agreement with Brazilian producer CMOC Brazil — currently have no spare material available for sale," a trader said. Most of the supply will come from the leading producer, Brazilian CBMM, and prices will rise aligned with CBMM's reference," he added. "But for now the impact is limited, as demand for ferro-niobium in Europe remains relatively stagnant."
"There is a lot of speculation around…. [but the impact] will depend on the duration of the strike and its eventual impact on production," a seller said.
