The Economics Of Tantalum One Processor's Viewpoint

Pricing for tantalum raw materials experienced explosive increases in the period 1978-1979, and-similar declines over 1980-1982. The causes for this are examined. Negative effects on the industry are highlighted. Analysis is provided of subsequent structural changes within the industry which minimize probability of future pricing excursions. Data on markets, sources of material, and outlines of concentration and extractive processes are reviewed. The conclusion is reached that expanded sources, future flat demand, and a broader international base of industry participants are principal forces in this restructure. Flat demand is reviewed as a function of increasing application of tantalum, but in more cost effective forms. This is driven by technical advance, notably in electronics applications.