Gallium prices jump as buyers lock in supply before China export controls

economictimes.indiatimes.com:

gallium prices jumped 27% this week as buyers reacted to China’s move to control exports of the niche metal used in an array of high-tech industries. Beijing’s announcement on Monday has been viewed as a retaliation over recent trade restrictions targeting the country’s semiconductor industry, and comes amid broader efforts by the US and Europe to reduce its dominance in the supply chain for critical raw materials. The gallium market was well supplied before the announcement, but buyers are now moving to lock in shipments before the controls kick in, according to one trader who said he has been actively buying this week.

Gallium and germanium are high-value products that are produced in small volumes, and traders don’t typically hold large volumes in stock, he said, requesting anonymity to discuss commercially sensitive matters. Gallium and other minor metals aren’t typically traded on futures exchanges, and price benchmarks are set by publishers like Fastmarkets, whose journalists survey producers, consumers and traders. Gallium rose to $326 a kilogram on Friday, the Fastmarkets data showed, up $43 from a week ago, in an early sign that buyers are seeking to shore up supplies before the export controls kick in next month.

Germanium, which is also subject to the restrictions, saw a much smaller impact, rising 1.9%. It’s still unclear how the new measures might affect Chinese shipments. From Aug.