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January 19, 2006

Scandium Oxide

An open letter to those selling scandium oxide.

(Sorry for the little intrusion of work blogging here folks).

Gentlemen,

Someone out there in Russia or the CIS is trying to sell off a stock of scandium oxide (or Sc2O3 if you prefer).

13 tonnes of it in fact. I’m pretty sure I know which warehouse that material is coming from, where and when it was extracted and so on. The existence of this material is not a big secret.

I have been offered it twice in the past couple of weeks. At wildly different prices. For the gentlemen who offered it to me at $300 per gramme, my apologies, but you are deluded. Your price is out by at least three orders of magnitude. (Think this through. You are asking for more than $3 billion dollars for a truckload of metal oxide. Think how much mining I could do with $3 billion.)

The other gentlemen, while their price was more reasonable, failed to take account of a very important fact. The whole wide world does not use 13 tonnes of scandium oxide in a year. Far from it, much less. When you offer for sale several year’s worth of global consumption of something it is normal for the price to be a discount to the prevailing market, not a premium. Most especially at a discount to the price we currently pay for exactly the same material, from the same warehouse, in the smaller quantities that we use it in, delivered to us when and where we want it.

So, while closer, still no cigar.

Yes, I know what is happening here. Someone is trying to sell this material and they are employing various dealers to try and place it for them. So there are now endless numbers of commodity dealers, brokers, chancers and the rest all scrambling to find out what they can about the market for scandium oxide. And most of them are going to end up talking to me at some point. For, sad as it may be to have to tell people this, we as an organization handle a large percentage of the world’s usage of Sc2O3. We’re not just one of those small number who know what it actually is, we’re one of the even smaller number who actually know what to do with it.

Yes, we’re even eager buyers of that material. All 13 tonnes of it. Yes, we’ll happily purchase several year’s global usage. At, it must be pointed out, the right price.

No, $3 million per kilo isn’t the right price. Nor is $3 million per tonne. Nor for 10 tonnes.

So why write all this for the public internets? So that those people in the network trying to sell it, as and when they peruse Google, will find it, at least I hope they will, and I’ll not have to waste time on the "but what’s your price?" "no, no, what’s your’s?" dance before finding out that someone’s lost touch with reality.

So if you’re one of those trying to sell this material, yes, please, do contact me. But can you remember, please, that the major market for this material is in bicycle frames? And price it accordingly? It just isn’t as valuable as you seem to think it is.

(Anyone who wants to link to this using the root phrase "scandium oxide", well, please do. Getting that little rant onto the first page will save me a lot of typing in the future.)

January 19, 2006 in The Low Hanging Fruit Company (BVI) Limited | Permalink

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Comments

Google suggests $75/g


which is just about $1B for the lot.

http://www.google.co.uk/search?ie=UTF-8&oe=UTF-8&sourceid=deskbar&q=scandium+oxide

Are you saying google is - shock horror - wrong?

Mind you, the same entry says that only 20kg is used per year, which would make the price right, but not the quantity. (And certainly wouldn't make a living for Mr T Worstall....)

Ah well...

Tim adds: That particular piece on google is indeed wrong. By, again, three orders of magntiude less a little.

Posted by: The Pedant-General | Jan 19, 2006 2:57:59 PM

Aidez Moi S’il Vous Plait!, Scandium Oxide...

Has your site become ebaynu?

Posted by: Hughes Views | Jan 19, 2006 7:23:20 PM

Yes, but where does such a massive quantity suddenly come FROM? Was there a Scandium Oxide Heist on the Henry Moore scale?

Tim adds: Did you manage to buy that scrap BTW? Underthe Soviet system there were large stockpiles of all sorts of things, held by the military etc. This is one of the last left.

Posted by: Auntymarianne | Jan 20, 2006 4:26:35 AM

When supply goes up demand goes down. economics 101. When the market becomes flooded, then the price goes over a cliff. Several years' worth of ANYTHING entering the market will make the stuff virtuallyn free!

Posted by: Martin Hague | Jan 20, 2006 10:29:17 PM

Interesting about your comments on the value of scandium, may be you're right? What price would you put on 300gm of scandium crystaline?
Thanks, looking forward to your reply.

Posted by: jonbillbob | May 8, 2006 10:34:07 PM

The last time I bought Sc2O3, in May 2005 it was $1.26 a gram. I bought 2 Kg for $2,520.00. The most I ever spent was $1.28/gram. $75 a gram is delusional. $300 a gram is a sign of mental illness.

Posted by: Sandy Beametski | Aug 3, 2006 1:51:00 PM

I am trying to catch your words:) So, you can buy all 13MT? It's purity is 99.99, 600USD per 1 kg. if you wish I would offer you to make a JV on the oxide scandium prodction.

The same quolity usually costs 2400-2500USD per 1kg, but it is if to sell on grams base. For the big volume price is reduced in 4 times. I suppose it is normal practice.

In fact this year the demand is about 1000kg in Japan, probably the same in the US. In year-two the demand in Japan will increase up to 10MT per year, people calculate. i am not sure about other countries. The problem is, that the seller does not want to wait:(

So, tell me where I should deliver it?:)

Posted by: Marina | Aug 9, 2006 10:01:30 AM

I am trying to catch your words:) So, you can buy all 13MT? It's purity is 99.99, 600USD per 1 kg. if you wish I would offer you to make a JV on the oxide scandium prodction.

The same quolity usually costs 2400-2500USD per 1kg, but it is if to sell on grams base. For the big volume price is reduced in 4 times. I suppose it is normal practice.

In fact this year the demand is about 1000kg in Japan, probably the same in the US. In year-two the demand in Japan will increase up to 10MT per year, people calculate. i am not sure about other countries. The problem is, that the seller does not want to wait:(

So, tell me where I should deliver it?:)

Posted by: Marina | Aug 9, 2006 10:01:57 AM

Hi!
Everybody is talking about scandium oxide, what about a pure form of scandium crystaline, what is its trade price & who would want it?
Thanks

Posted by: Jon | Sep 17, 2006 9:15:09 PM

Please response the questions:

1- Deal consumption scandium to world (please severance nation)
2- Scandium economic assay for recovery scandium from titanium ore
3- Address some methods recovery scandium from titanium ore

Very tank you

Posted by: Ostadrahimi | Jan 20, 2007 5:12:43 AM

1kg of pure Sc to offer
any ofers on
zlatan585@net.hr

Posted by: dumscan | Feb 1, 2007 8:56:27 PM

if you are interested in buying oxid scandium, please contact me - bek.kie@nursat.kz

Posted by: Bekbulat | Feb 28, 2007 5:38:24 PM

Dear Mr. T. Worstall:
You seem to know who I am. I wonder who you are?
It seems to me that China has you by the balls. They are the only refiners of
rare earths that I think exists. So what
would they charge you for 13 MT?
sincerely, Ken

Posted by: Kenneth Ross Ball | Apr 27, 2007 1:04:16 AM

At present we have some distilled Scandium metal for sale, please check the certificate of analysis at http://www.cathaymaterials.com/sdp/122091/4/cp-1069406.html .

Please check our price as follows:

Distilled Scandium metal
TREM 99.95%
Sc/TREM 99.994% min.
1kg at USD6,800.00

Please feel free to let us know if you have interest in this distilled Sacndium metal.

Posted by: Tao Zhen | Aug 29, 2007 12:59:52 PM

We are incorporating TEXAS COPPER, llc. We have discovered scandium running 11 g/t and 85 g/t Indium, plus other payable metals at the surface.plan on drilling soon.drilling will determine the outcome of this prospect. this mineral location is west of Ft Worth, Texas in the pennsylvanian formation.

Posted by: B R Atkins | Dec 20, 2007 3:17:37 PM