The rawmat scarcity of 1–2 ABY manifested as a galaxy-spanning deficiency in crucial raw materials (or "rawmats"), especially those needed for the construction of capital ships. This shortage was particularly severe in the Core Worlds and the Mid Rim regions. Doonium, a white-gray metal essential for hull plating and responsible for the distinctive color of many capital ships, was the hardest hit. However, other materials, like hybrid plexisteel, also became difficult to acquire. This dearth of resources stemmed from a confluence of factors: heightened demand from the Imperial government, Rebel attacks targeting key production facilities, and a pre-existing decline in the Mid Rim's production capacity.
This shortage persisted for nearly a year, triggering a recession within the Core Worlds. This economic downturn had political repercussions for planets in the Core, notably Esseles, where the Forad Party lost control of the Esselian Hall for the first time in a decade. The scarcity also fueled smuggling activities, including a large-scale operation uncovered by Imperial Customs on Brentaal. Furthermore, the shortage spurred innovative solutions, such as using alternative materials in warship construction. A prime example is the armoring of one hundred Victory-class Star Destroyers with red havod-alloy plates.
Several factors contributed to the raw materials shortage. The Mid Rim of the galaxy was a region with fewer resources and lower population densities compared to areas closer to the Core. In the decades leading up to the Battle of Yavin, the Mid Rim experienced a gradual decrease in its raw materials output.
Concurrently, as the Galactic Civil War intensified, the Galactic Empire significantly expanded its military. To facilitate this expansion, the Empire removed legal barriers to military build-up, employed forced labor, and engaged in strip-mining entire planets to obtain resources for its militarization efforts. By 1 ABY, Imperial orders for raw materials were significantly impacting the availability of these materials for the private sector.
Finally, after the destruction of the first Death Star, the Alliance to Restore the Republic's propaganda network gained traction in previously unreachable areas. Even the most isolated settlements learned of the Empire's defeat. This greatly accelerated the Alliance's efforts to incite armed resistance, leading entire worlds to openly defy the Empire. The Rebellion was now capable of launching numerous rapid, precise attacks against Imperial forces, targeting key raw materials production sites.

These converging factors culminated in 1 ABY in a critical shortage of raw materials, most notably in the Core Worlds and Mid Rim. Doonium, the white-gray metal used for hull plating on capital ships like Star Destroyers, became especially scarce. However, other crucial materials, such as hybrid plexisteel, were also in short supply.
Cynabar's InfoNet was among the first news sources to report on the raw materials shortage, which was commonly referred to as "rawmat". On 36:6:26 GrS, their article "Mid-Rim Experiencing RawMat Shortage" revealed that industry insiders believed raw materials were becoming scarce, and that purchasers were acquiring every available shipment of doonium. Cynabar's experts attributed the scarcity to increased Imperial demand, Rebel attacks on production facilities, and the long-term decline in Mid Rim production. Cynabar's InfoNet also discovered that while most Imperial rawmat transports were standard charters heading to well-known shipyards like Kuat and Tallaan, a significant number were military vessels under the control of the Imperial Energy Systems subministry. These ships were traveling to secret locations, possibly in the Core. The report advised free-traders with access to scarce raw materials to stockpile them, as NewsNet predicted they would sell for double the price within the next fiscal quarter.
Within a month of publishing "Mid-Rim Experiencing RawMat Shortage," the Empire launched an intensive search on Nar Shaddaa for the individuals behind Cynabar's InfoNet.

The shortage of raw materials caused prices for manufactured goods to skyrocket in the Core Worlds and Mid Rim. Four months after the shortage was first reported, it had a significant impact on the Core Worlds' economy, leading to a recession. This economic downturn led to political consequences on planets like Esseles. Esseles had long been politically dominated by its President, Cambira Ralle, a former Clone Wars hero, and his Forad Party. However, as the planetary economy weakened along with the rest of the Core, Jamson Freller, the leader of the Esselian New Order Party, took advantage of the situation. He criticized Ralle's policy of allowing non-Humans to hold strategic manufacturing jobs on the planet. This criticism significantly weakened the Forad Party's coalition government with the Cardean Party, as well as Forad itself. In the Esselian Hall election during the New Year Fete Week of 2 ABY, Forad lost its majority in the Esselian Hall for the first time in two decades. Freller's ENO party made substantial gains, allowing him to call for a new Presidential election. Within a month, terrorist attacks by the anti-Imperial group known as the Faceless at Grande Hyet and Tralee further destabilized the political situation on Esseles, leading to a strike by the Guild of Offworld Skilled Laborers and an exodus of aliens from the planet.
By the second month of the year, the Outer Rim Territories were also experiencing a significant shortage of raw materials. When Imperial Customs uncovered a rawmat smuggling operation on Brentaal, the lead investigating officer initially suspected the materials were destined for secondary markets in that region. Customs agents raided an abandoned warehouse in the Votrad sector of Brentaal's starport, discovering thousands of tons of missing raw materials. Tracing the registry and lot numbers on the goods revealed that the traffickers had rerouted shipments from mining and corporate transport vessels into the warehouse by slicing into corporate and Customs computer systems.

The shortage also impacted military production. At Kuat Drive Yards's shipyards in the Kuat system, one hundred aging Victory-class Star Destroyers, which had arrived in 0 BBY and were scheduled for completion by the end of 1 ABY, remained unfinished. The doonium hull plates intended for these ships were diverted to more modern Star Destroyers elsewhere in the shipyard, leaving the Victory-class ships idle for nearly five months awaiting new plating, despite having fully refurbished engines, weapons, shields, and hangars. To avoid having these ships remain unusable in dock, Imperial Admiral Kendel ordered havod metal alloy plates for them in the fourth month of 2 ABY. Havod, a reddish alloy that met all military specifications, was typically too difficult to process for such applications, but Kendel considered it necessary to free up the docks for other projects.
The decision to plate Victory-class Star Destroyers with havod alloy was met with disapproval from both crews and the public. Admiral Kendel's office was inundated with transfer requests from individuals who had previously been eager to serve on these refurbished ships. The Historical Battleship Preservation Association, through member Harod Crimmler, expressed its dissatisfaction with the move, stating, "It would be a shame to see the classical appearance of the Victory-class destroyer marred by red hull plating."
The raw materials shortage eventually subsided as high prices for finished goods prompted investors and mining companies to quickly open new mines to meet the demand. Admiral Kendel's spokeswoman announced that Kuat Drive Yards would receive regular doonium shipments from newly-opened sources in the Outer Rim in the third fiscal quarter of 2 ABY, eliminating the need for further havod refining. Rally's Daily Investor estimated that 9,000 new system-wide mining facilities would begin full production during that time.

The recession in the Core Worlds caused by the shortage soon ended, and within a year, some economic indicators reached record highs. On 38:4:21 GrS, the Brentaal League of Guilds declared a Landmark Holiday, celebrating the fact that more stocks and credits were exchanged during the previous five-day period than at any time in history. The extensive trading boosted industry throughout the Core Worlds, with corporations like HavaKing, Santhe/Sienar Technologies, MerenData, the Imperial Mining Corporation, and the Tagge Company all reporting record profits and dividend increases.
Despite the initial negative reaction to the red-hulled Victory-class vessels, their havod plating was military-grade and suitable for the Imperial Navy's needs. A decade after Kendel's unconventional order, seventy-three Victory-class Star Destroyers with red-alloy hulls were still in service in the Crimson Command of High Admiral Treuten Teradoc, a breakaway Imperial warlord. This flotilla was under the command of Rear Admiral Gilad Pellaeon, who later became the leader of the Imperial Remnant.
The opening of thousands of new mines in remote areas of the Outer Rim provided independent tramp freighter captains with opportunities to serve the miners and support staff stationed there. Due to the rapid proliferation of new mines, most corporations had not established company stores, allowing independent traders to sell directly to the miners. Items in high demand at these new work sites included entertainment holos, small, unarmed battle droids, pets not listed on the ImpDoc Export Unrestricted list, and various intoxicating substances.
Imperial Customs was an Imperial agency responsible for enforcing laws and regulations related to trade, smuggling, and the illegal use of starships. Its responsibilities overlapped with the Imperial Navy's civilian traffic monitoring duties. Imperial Customs played a role in efforts to combat raw materials smuggling. On 37:2:22 GrS, Customs agents on Brentaal raided a warehouse complex in the Votrad sector, discovering thousands of tons of missing raw materials. By tracing the registry and lot numbers on the goods, they determined that the smugglers had rerouted shipments from mining and corporate transport vessels to the warehouse by slicing into corporate and Customs computer systems.
The Imperial Energy Systems subministry was a division of the Ministry of Energy. Established in 1 ABY, it was supposedly tasked with creating large-scale portable power generators for disaster relief. Headed by Moff Tiaan Jerjerrod, it actually served as a front for the second Death Star construction project. Shortly after its creation, Cynabar's InfoNet learned that many military ships assigned to the subministry were transporting raw materials to undisclosed locations.
The Imperial Military encompassed the Galactic Empire's armed forces, including the Imperial Navy and Imperial Army, and was supplemented by the Stormtrooper Corps. The military was massive and supported by a powerful industrial complex that utilized both nationalized assets and private sector contractors. The Empire facilitated the military's growth by removing legal obstacles, using slaves, and strip-mining entire planets. The military's rapid expansion led to significant government demand for raw materials, which greatly impacted the available supply for the private sector.
The Alliance to Restore the Republic (also known as the Rebel Alliance or Rebellion) was a coalition of resistance forces formed in opposition to the Empire. It dealt a major blow to the Empire by destroying the Death Star at the Battle of Yavin. The Rebels' propaganda network used this victory to accelerate armed resistance movements throughout the galaxy, enabling them to launch rapid, precise attacks against Imperial forces. The Alliance targeted key raw materials production sites, contributing to the shortage.
Cynabar's Infonet was an illicit news service produced by a mysterious smuggler or group known only as "Cynabar." The service aimed to inform smugglers and traders about business opportunities and the activities of the Galactic Empire. Access was exclusive and expensive, available only by invitation. Cynabar's InfoNet was among the first to report on the raw materials shortage, with an article titled "Mid-Rim Experiencing RawMat Shortage." The article revealed that many Imperial rawmat transports were military vessels assigned to the Imperial Energy Systems subministry, heading to undisclosed locations. The report advised free-traders to stockpile any raw materials they had access to, as they were likely to sell for twice the price in the following fiscal quarter. Less than a month after the article's release, the Empire launched a major search for the creators of Cynabar's InfoNet on Nar Shaddaa. Although the creators were not found there, the increased scrutiny forced them to go underground for several months.
Kuat Drive Yards was the largest military shipbuilding corporation in the galaxy during the Galactic Civil War, based on Kuat. It primarily sold its products to the Empire, building iconic vessels like the Imperial-class Star Destroyers, Executor-class Star Dreadnoughts, and All Terrain Armored Transports. The yards also refurbished and refitted Imperial ships of non-Kuati manufacture. Kuat continued to receive raw materials transports from the Empire even as private sector supplies dwindled; however, eventually even their military production suffered due to the shortage, forcing them to use nonstandard materials to complete lower-priority projects.
Jamson Freller was a Human male from Esseles and leader of the Esselian New Order Party, opposing Esselian Hall President Cambira Ralle. Freller capitalized on Esseles's struggling economy during the Core Worlds recession, criticizing Ralle's policy of allowing aliens to hold certain strategic jobs. His attacks significantly weakened the Forad Party's coalition, allowing his party to make major gains in the Esselian Hall Election of 2 ABY. With these gains, Freller called for a new Presidential election. When terrorist attacks by the anti-Imperial group known as the Faceless further destabilized Esseles's political scene, Freller outwardly supported Ralle while casting doubt on Ralle's motivations.
Admiral Kendel was an officer stationed at Kuat Drive Yards. Faced with one hundred unfinished Victory-class Star Destroyers due to the doonium shortage, Kendel issued the unusual order to process havod metal alloy into plating for these ships. Kendel's decision was widely criticized by both outside commentators and crew members scheduled to serve on the refurbished ships.
Cambira Ralle was President of Esseles and leader of the Forad party. A former Clone Wars hero revered for leading Esseles through that period, he and his party had long dominated the world's political sphere. By the time of the raw materials shortage, however, his age and failing health had weakened his position. As Esseles's economy faltered with the rest of the Core, his political rival, Jamson Freller, attacked his policy of allowing non-Humans in strategic manufacturing jobs, an attack which significantly weakened the Forad Party's coalition government. In the Esselian Hall Election held soon thereafter, Forad lost its majority for the first time in twenty years, giving Freller the political capital to call for a new Presidential election. Less than a month later, terrorist attacks by the Faceless required Ralle to compete with governor Griff Takel for the right to send troops into the affected areas, to urge calm and reassure businesses frightened by the attack, and to have talks with the striking Guild of Offworld Skilled Laborers.
Dalea Trovin was an Imperial Customs officer stationed in the city of Votrad on Brentaal. She coordinated an investigation into raw materials smuggling that uncovered a warehouse filled with thousands of tons of missing raw materials shipments. Trovin suspected that the materials were destined for secondary sources in the Outer Rim. By tracing the registry and lot numbers on the goods, her investigators were led to misdirected shipments from mining and corporate transport vessels, which the traffickers had rerouted into the warehouse by slicing into corporate and Customs computer systems.
The raw materials shortage was a recurring topic in the "Galaxywide NewsNets" feature of several issues of the Star Wars Adventure Journal. It was first mentioned in issue number 7's Galaxywide NewsNets, in an article entitled "Mid-Rim Experiencing RawMat Shortage" attributed to Cynabar's Infonet. Two subsequent NewsNet posts in the same issue, "Cynabar's Infonet Shutting Down" by Cynabar's Infonet and "Empire Shows Flag at Nar Shaddaa" by Galaxy News Service, discussed the NewsNet's hiatus; their proximity to the prior post, which included hints of covert Imperial activity, suggest that the shutdown was a related event.

The raw materials shortage was further discussed in the following issue, in an article attributed to Deena Mipps of Darpa SectorNet, "Rawmat Recession Threatens Ralle's Coalition." It established the raw materials shortage as a cause for a recession in the Core Worlds and the political ramifications for the planet Esseles. The article "New Order Captures Parliament Majority" followed up on this political event, as did "DynaCorp Refinery Blasted by Rebel Terrorist," "Ralle Urges Calm in Aftermath," and "Alien Workers Reach Accord with the Hall" in Star Wars Adventure Journal 9. That issue also contained a Brentaal Trade News article, "Customs Uncovers Rawmat Smuggling," which showed that the shortage was resulting in smuggling operations. This article indicated the Outer Rim was experiencing the shortage, whereas previous and later sources refer to the Core Worlds and Mid Rim being hit hardest.
The "Galaxywide NewsNets" in Star Wars Adventure Journal 10 contained two articles on the shortage. The first, an Imperial Defense Daily report entitled "Rawmat Shortages Lead to Red Ships - Commanders Outraged," humorously looked at the effect the shortage was having on Imperial shipbuilders and the military. While not explicitly stated as such, the article also appears to be an attempt to establish the origins of the red-hulled Victory-class Crimson Command seen in Kevin J. Anderson's 1995 novel Darksaber. The second article, "New Mines Opening Means Big Business for Spacers" by Independent Traders' Infonet, served as a coda for the rawmat shortage, establishing that numerous new mines were being opened to meet the demand for raw materials.
The reluctance of Imperial Navy personnel to serve on 'pink' Victory Star Destroyers is possibly a reference to the 1959 comedy film Operation Petticoat, in which a submarine is painted pink because insufficient white primer paint is available and sailors are reluctant and embarrassed to serve on it.