HOUSTON, January 5th (Argus) - Due to strong demand for high-purity ammonium paracyclotungstate (APR) from China, the supply of reinegerite particles suitable for jet engine applications has become tight. At the same time, the demand from original equipment manufacturers (OEMs) has soared, causing the price of reinegerite to reach its highest level in more than a decade.
The Argus assessment on December 31st valued 69.4% reinegerite catalyst-grade APR at $1710 - $1820 per pound (reinegerite pricing) (offshore price from the US warehouse), an increase of 130% compared to $735 - $800 per pound a year ago, and much higher than the average price of $626 per pound over the past 10 years until 2025. The situation in the European market is similar to that in the US market. The latest Argus assessment price of catalyst-grade APR in Europe was €3600 - €3800 per kilogram (arrival price at Rotterdam) (1,633 - 1,723 US dollars per pound), an increase of 125% compared to a year ago.
In 2025, the price of rhenium particles also saw a significant increase. On December 31, the delivery price in US warehouses was $1,730 - $1,840 per pound, which was more than double that of the same period last year. The price of rhenium particles in Europe was $35 per pound lower than that in the US. According to the assessment by Agence France-Presse on December 30, the price of 99.9% grade rhenium particles (including importation cost to Rotterdam) was $1,700 - $1,800 per pound.
The price gap between APR and rhenium particles in the United States has narrowed, indicating that end-users are eager to obtain rhenium elements regardless of their form. Currently, the price of rhenium particles in the United States is $20 per pound higher than that of APR, which is the narrowest price gap in over a year.
Most market participants have not yet witnessed the emergence of the price cap, as the market structure remains tight. Currently, the price is still far from the historical high of over $5,000 per pound set in 2008.
China's imports have increased
Sources told Aegis that the domestic production of rhenium in China was previously limited to a small amount of low-grade APR produced by Jiangxi Copper, a major copper smelting plant. Over the past few years, China has imported a large quantity of APR, consuming the inventory that Chile had accumulated over a relatively stable decade in the market.
The decline in Chile's rhodium reserves has led to a shortage of rhodium supply globally. China has absorbed a large portion of it. According to British trading company Lippmann Walton, in 2023, China's rhodium imports from Chile exceeded those of the United States. The import volume reached 25.6 tons that year, and in 2024, it imported another 20.6 tons, while in 2018, it was only 2 tons.
According to Lippmann Walton Company, the global supply of rhenium in 2024 will reach 105.1 tons, including primary rhenium, recycled rhenium, processed raw materials and inventory materials. However, according to the United States Geological Survey (USGS), the primary rhenium production in 2024 will only be 62 tons, highlighting the importance of China's imports. According to the USGS, the global recycled rhenium production in 2024 will be approximately 25 tons.
The demand for aerospace has soared.
Rhenium is indispensable in several nickel-based alloys used for manufacturing aircraft engines and industrial gas turbine blades.
According to data from the Small Metals Trade Association (MMTA), major engine manufacturers such as General Electric Aviation, Pratt & Whitney, and Rolls-Royce consume approximately 45 tons of rhenium annually. The backlog of orders from European manufacturer Airbus and American aircraft manufacturer Boeing totals 15,317 aircraft, which means there will be a demand for over 30,000 original equipment engines in the next decade.
According to MMTA, apart from the aerospace sector, platinum-rhenium reforming catalysts consume approximately 15 tons of rhenium annually. However, most of this is recycled through their products, allowing for closed-loop production. As a result, the demand for raw rhenium is relatively low. Market participants indicate that demand from the medical industry is on the rise. According to representatives at the 2025 MMTA annual conference held in Lisbon last year, since 2023, the US Food and Drug Administration has approved several new medical devices made of molybdenum-rhenium alloys.
In 2025, rhenium was re-added to the key minerals list of the United States Geological Survey. Previously, it had been removed from this list in 2022. The key minerals list of the US Geological Survey specifies the "minerals" that are deemed necessary for the manufacturing of products considered crucial to the US economy and national security.
Unconventional buyers are preparing to enter the market.
In recent months, some non-rhenium metal consumers have begun to seek to purchase this metal, aiming to use it for investment or hoarding purposes. This has exacerbated the already tight market's concerns about supply.
Over the past few months, private investors, especially Chinese investors, have shown interest in the rhenium market, which is similar to the recent investment boom in platinum group metals (PGMs). The shift in industrial consumption and investor sentiment has driven this trend. A trader in Europe told Agence France-Presse: "Due to the increase in platinum group metal prices, some people believe that rhenium is the next best option."
In 2025, the U.S. Defense Logistics Agency (DLA) released an information request, which raised concerns among market participants. In September last year, DLA announced a five-year information request for the purchase of 40 tons of rhenium. Most market participants claimed that such a large purchase volume was unrealistic and would disrupt market supply. Subsequently, DLA also released an information request for 25 tons of APR. Some market participants expected that an auction would be conducted by the end of 2025, but so far there has been no new official statement. Sources said that the current increase in rhenium prices is not only driven by fundamentals but also by investment enthusiasm and potential storage policies. Due to the tight supply and the growing demand in non-replaceable fields, the price of rhenium has reached its highest level in the past 10 years.
