JOHANNESBURG, SOUTH AFRICA (Commodity Online): Amongst the most explosive commodities that are traded in the shadows of the strides of metals like gold and silver lies Iridium, a rare mineral used primarily for electrical purposes. Iridium prices recorded an incredible 83 percent gain during the year 2010, dwarfing the performances of other commodities of bigger markets. The application of iridium ranges from TV’s to electric bulbs to mobile phones, which is expected to growth rapidly in the coming years. The role that LED plays in reducing the consumption of energy plays a vital role in determining how the industry shapes up in the future. Price exacerbation in the mineral, understandably, is solely due to the overwhelming demand for Iridium in the manufacture of crucibles, which are used to create single crystal sapphire. Single crystal sapphire is used for the development a Light Emitting Diodes, which in turn is used to backlit screens. The electrical demand for iridium witnessed a humungous rise of over a 1000 percent and that too in a very short period of time from 2009 to 2010. Meanwhile, the total demand for iridium grew by 124 percent during the corresponding time, which seems rather modest when compared with the electric demand for the metal. The global LED market grew 93 percent, increasing its total worth from $5.6 billion in 2009 to $10.8 billion in the following year, according to the report formed by Strategies Unlimited. The report also estimated the market to increase towards $18.9 billion by 2015. Strategies Unlimited also mentions the compounded Annual Growth Rate (CAGR) 16 percent China, not surprisingly, spear heads the LED backlighting market with government subsidies and high demand for the products providing the market with unlimited fuel. China has planned to cut back on energy usage equivalent to 100 billion kilowatt hours annually by 2015 by promoting the LED industry. South Africa is the largest producer of Iridium and the Platinum group of metals, and the country is pursuing the goal to increase its production of platinum by five percent this year from 4.64 million ounce in 2010. Iridium is mostly a by-product of platinum and other metals such as gold copper. However, strikes and other disruptions to production has remained a hurdle for production expansion efforts in the region. Nevertheless, the soaring prices of the mineral are sure to incentivize producers to enter into the market. Anglo Platinum, the largest producer of platinum and iridium plans to increase its platinum output in 2011 to 2.6 million ounces from the previous 2.5 million ounces.

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