Correction to clarify that niobium metal, niobium pentoxide and nickel-niobium are subjected to tariffs.
The US has excluded ferro-niobium from newly imposed tariffs on Brazilian imports, as the country produces around 90pc of the global supply.
US president Donald Trump exempted nearly 700 Brazilian products from the 50pc tariffs announced on 30 July.
Ferro-niobium is notably among the exempted products. The US imports 66pc of its ferro-niobium metal from Brazil, according to data from the US Geological Survey.
But niobium metal, niobium pentoxide and nickel-niobium are not exempted, Argus understands. These products are subjected to an additional 40pc tariff, effective on August 6, on top of the previous 4.9pc duty.
Niobium is primarily consumed as ferro-niobium by the steel industry and as niobium alloys and metal by the aerospace sector. Brazil accounts for approximately 90pc of global niobium output. Canada is the second-biggest producer, accounting for approximately 8pc of global demand, but supply from its main producer, Niobec, has fallen after a strike in May and most of June, market sources said.
"The US dependence on [Brazilian] ferro-niobium is exceptionally high, so imposing tariffs would not make sense," commercial director at green steel start-up Boston Metal, Gustavo E Manna Macedo said.
In this case ferro-niobium was spared, but global geopolitical tensions and the use of tariffs to gain political leverage could spur diversification efforts."Given the growing concerns surrounding the supply chains for critical minerals, this highlights the importance of developing new sources of niobium," he told Argus. "It's not only an economic decision any more."
Earlier this week, consumers and suppliers considered the possible trickle-down effects of proposed tariffs on Brazil. Ferro-niobium can substitute vanadium, particularly in certain steel bar and rebar applications. Sources noted a 50pc tariff on the alloy could have elevated demand for ferro-vanadium."The exception came as a relief," a trader told Argus.
The ferro-niobium spot market is experiencing tightened availability, with prompt inventories squeezed by reduced output from Canada. In Europe, the Argus price assessment held steady at $49.50–50.50/kg duty unpaid yesterday, but has increased by nearly 12pc since the start of the year.
