Japanese traders hold different views towards the indium market
2008-05-09 13:54:00 【Print】
BEIJING (Asian Metal) 9 May 08 - Some Japanese traders believe that the indium market may begin to decrease since it calms down after the May Day holiday, but others believe that the indium market may remain stable at least or rise further.
"The indium market is likely to decrease this month, as Japanese ITO manufacturers, major indium consumers, did not purchase from the spot market last month when the price climbed quickly in China and will not buy this month, since they have long-term contracts to meet their demand," said a trader, whose trading volumes were around five tons and twenty tons in 2007 and 2006 respectively.
The source cited that the indium import volume from China to Japan was only 9.2t in the first quarter this year, accounting for 15% of its total import and down by 52% compared with the same period last year. Therefore, the source believes that Japanese consumers may keep buying small quantities of indium metal from China in the coming months.
Besides, Japanese import volume decreased to 62.4t in the first quarter this year, down by 24% from 81.7t in the corresponding period last year, so Japanese indium import volume this year may decrease from that last year, anticipated the source.
Although the source does not deny that some non-ITO producers may purchase indium metal, as they do not have enough inventories for consumption, the source still believes that the market may go down sometime this month, since there are slim chances for major indium consumers to come back to the spot market.
However, another trader, who is typical of optimistic traders in Japan, holds that the indium market may remain high or go up higher.
"Japanese indium market becomes a bit active and traders are receiving more inquiries than those before the middle of April," said the source, adding that the demanding volume is around 300-500kg per lot.
However, the trader has not concluded any deals. "Japanese consumers may accept the indium 99.99%min price of USD650-670/kg, but Chinese major smelters do not quote," explained the source.
In view of Chinese government's restrictions on illegal indium production and smuggled indium and low outputs from Chinese smelters, the source believes that the market will remain stable or go up further.
"Overall, demand of indium metal is increasing, while Chinese smelters produced little in the first quarter of this year due to low prices, so the market presently stands in favorable situations for the price to rise," concluded the source, predicting that ITO manufacturers may enter the spot market to buy in the second half of this year.
