CBMM to Expand FeNb Sales to 1.5 Times by 2014

World largest niobium producer, Companhia Brasileira de Metalurgia e Minera??o (CBMM)’s CEO Tadeu Carneiro said on Monday the firm increases the ferroniobium to 100,000 tonnes in 2014, which is 1.5 times of estimated volume in 2010. The firm expects the demand increases according to higher production of high valued steel for automobile fuel saving and pipeline for LNG. The firm expands the production capacity along with the demand growth to secure the additional capacity much more than the sales volume. The top supplier with world 80% share tries to keep stable supply even in accident.

Mr. Carneiro said to a reporter of Japan Metal Bulletin at party with Japanese customers in Tokyo the firm expects 60,000-65,000 tonnes of sales with 90,000 tonnes of production capacity in 2010. The sales increase from 38,800 tonnes in 2009. He said the firm expects the sales will increase to 100,000 tonnes in 2014 and the firm expands the production capacity accordingly with growing demand.

The firm can make 110,000 tonnes per year with the existing facility in Arax?, Minas Gerais of Brazil and tries to find the timing to expand the capacity to 150,000 tonnes, according to related source.

CBMM has unique policy to secure production capacity more than world demand for stable supply. Mr. Carneiro said the firm decided to secure the reserve capacity for stable supply while the sales volume was almost capacity level in 2005-2007.

Mr. Carneiro said the niobium sales grew at annualized 10% in 1996-2003 and at 12% in 1996 to present while world raw steel output increased only 4% and 5% respective periods. He showed expectation for more niobium utilization by Japanese users when Japan increased the usage to 70 gram per tonne of raw steel output in 2008 compared with 45 gram in 2004.

Mr. Carneiro emphasized niobium’s efficient performance for finer grain structure of steel compared with other additives and niobium’s property to balance competing goals for toughness and strength. He said niobium contributes to fuel saving and steel volume saving at final stage of the steel supply while the usage contributes to save resources including iron ore and coking coal.