The airline industry's fight for survival in the face of soaring oil prices has triggered a massive jump in the price of a number of obscure and scarce metals that are used to improve the fuel economy of jet engines.
Traders said demand for minor metals such as rhenium, chromium, cobalt and
titanium is booming as Rolls-Royce, General Electric and Pratt & Whitney buy them for new super-alloys that help cut aircraft fuel consumption.
The
rhenium price on Tuesday surged to a record of $11,250 a kilogram, more than double last year's level and up from about $1,000 in early 2006, traders said.
Chromium, produced mainly in South Africa, has also benefited from the desire for fuel-efficient engines. Its price has jumped this month to a record of $11,000 per tonne, up from about $6,800 last year and less than $4,000 in 2000.
The price of
cobalt, which comes predominantly from the Democratic Republic of Congo, rose earlier this year to $52.50 per pound, double its 2006 level and the highest price since at least 1978.
– Financial Times