Chinese demand drives boron industry: Roskill

In the thirteenth century Marco Polo brought borax glazes, a compound of boron from his travels in Asia back with him to Italy. Eight hundred years later, demand continues to seesaw between the East and West. According to Roskill Information Services’ outlook for boron, the industry is booming thanks to Chinese demand.

With an increasingly technology-driven world, boron, in the form of borates or boric acids, is an essential component in the manufacture of fiberglass and borosilicate glass.

The glasses are commonly used in everything from LCD screen to composites used in vehicle manufacturing to glass wool for insulation.

The increased demand from Asia, according to Roskill, is influenced by the region’s ability to produce textile-grade fiberglass, borosilicate glass and ceramics for lower production costs then its North American and European counterparts.

Consumption in China rose by 15% a year from 2000 to 2008 but 2009 saw a “sharp drop” in demand. With that being said, in the second half of 2009 textile-grade fiberglass and borosilicate glass recovered and Roskill predicts demand for borosilicate glass used in LCD screens (a key component in mining equipment) to grow by 15% in 2010.

But LCD screens and electronic products aren’t the only use for boron.

Due to its association with fiberglass, boron is rapidly becoming an important component in markets traditionally held by steel and concrete. The mineral is also used in emerging markets such as turbine blades for wind power generation.

According to Roskill’s market report, an increase in construction activity and government-led initiatives to reduce energy consumption will boost the demand for insulation-grade fiberglass.

The United States and Turkey dominate in production of borates with Rio Tinto Minerals and Eti Mine supplying 75% of the world’s boron. The B₂O₃ content (more than 26%) in the colemanite, tincal and kernite mined by Rio Tinto in California’s Mojave Desert and Eti Mine’s project in Turkey, is the main reason for these two companies leading position in the market.

Since 2003, Rio Tinto in the U.S., Quiborax in Chile, Eti Mine in Turkey and Manufacturas Los Andes in Argentina have boosted boric acid output by over 200,000 tonnes per year to meet the demands of the Chinese.

As for the horizon, Roskill says a gap between China’s production and demand will prove to be the key driver in capacity expansions worldwide.

Turkey, a historical leader in borax mining, will continue to exploit high-grade borates. Rio Tinto also has plans to develop the Jadar lithium-borate deposit in Serbia.

— This is a condensed version of a report by Roskill Information Services. The full report is available from www.roskill.co.uk.