Indium sources puzzled by the market

BEIJING (Asian Metal) 18-Mar-2005 While producers and traders in China are facing a slipping market for indium, as more and more indium stocks swarm into the market and the price keeps dropping down again and again, some company abruptly raised the price. Industry participants are quite puzzled at the price adjustment.Asian Metal CopyrightBEIJING Asian Metal 18-Mar-2005 While producers and traders in China are facing a slipping market for indium, as more and more indium stocks swarm into the market and the price keeps dropping down again and again, some company abruptly raised the price.Asian Metal Copyright

Insiders speculate that it should be some major traders who hold large stocks built up previously are trying to fry the market to close out for more cash.

"We are really puzzled at the price hike,” an official for a major indium smelter told Asian Metal. “The price had actually been sliding, and of course no supplier would like to see any dips.Asian Metal CopyrightAnother major trader in South China confirmed the quiet market shift, stating that more and more indium stocks are coming trickling into the market.Asian Metal Copyright”

According to the source, domestic prices have already dropped. "Previously, we had to pay RMB7,800/kg VAT-excluded to acquire limited crude indium. Now, it’s very easy for us to conclude at RMB7,300/kg," said the source.

In recent weeks, crude indium VAT-included prices were once as high as RMB8,600-8,700/kg. "But now, you can get any amount at a price of over RMB8,400/kg," said the source.Asian Metal Copyright "But now, you can get any amount at a price of over RMB8,400kg," said the source.Asian Metal Copyright

Most indium smelters' refined output are exported through long-term contracts. "This week, we tried to quote USD1,060/kg Cif to a Asian buyer, but the buyer told us he had already received an offer of USD1,010/kg Cif," the source told Asian Metal.Asian Metal Copyright Insiders speculate that it should be some major traders who hold large stocks built up previously are trying to fry the market to close out for more cash.Asian Metal Copyright

The smelter keeps a monthly output of over 2t.

Another major trader in South China confirmed the quiet market shift, stating that more and more indium stocks are coming trickling into the market. "The Chinese have never been the ones to manipulate the indium market,” the trader commented.Asian Metal Copyright In recent weeks, crude indium VAT-included prices were once as high as RMB8,600-8,700kg.Asian Metal Copyright “But let's see what will happen this time.”