In the world of manufacturing, high-quality sand is a precious commodity that is essential for producing ultra-clear glass for smartphones and solar panels. With a silica concentration of over 99.9%, this specialized sand is in high demand but limited supply. As China invests heavily in manufacturing sectors like lithium-ion batteries, electric cars, and solar panels, the demand for high-quality sand is only expected to increase.
The market for high-quality sand is complex and prices have been steadily rising, reaching around $55 a tonne last year. The expansion of green manufacturing and the popularity of smartphones have contributed to this price surge. Additionally, strict regulations in countries like the US make extraction of sand challenging, driving up prices even further.
As manufacturers search for alternatives to traditional high-quality sand, some are considering refining lower-quality sand with a silica concentration of 99.5%. However, this process is costly, leading some miners to turn to the black market for cheaper options. Countries like Australia and Brazil are well-positioned to profit from the legal extraction of industrial sand, as they have significant reserves and are not under China’s influence.
These countries may also help diversify Western supply chains and make them more resilient. With Brazil’s shipping lanes avoiding potential disruptions, high-quality sand could become a key commodity in the green transition. While prices may fluctuate in the short term, the long-term outlook for high-quality sand remains strong.
As manufacturers navigate the challenges of securing high-quality sand for their production needs, the future of this essential resource remains uncertain. With demand expected to increase and supply limited, the industry will continue to evolve as new extraction methods and sources are explored. Stay informed on the latest developments in economics, finance, and markets by subscribing to Money Talks, our weekly newsletter for expert analysis on the biggest stories in the industry.
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