Japanese gallium market unchanged

BEIJING (Asian Metal) 7 Aug 06 - Japanese gallium market remains stable currently, but an official from a smelter made it available to Asian Metal that they want to increase the price, as the major consuming industry -- gallium arsenide industry, moves well.

"The growth rate of gallium arsenide sector is expected to be around 5-6% this year," said the source. "Therefore, end users are likely to accept the price increase.Asian Metal Copyright .Asian Metal Copyright"

As early as this April, the smelter increased the price of gallium 99.9999%min from USD400/kg to USD430-435/kg in the spot market.Asian Metal Copyright9999%min in 2006.Asian Metal Copyright Although end users resist to accept the increased price, those who are eager to purchase the material can accept the price increase, which gives the smelter confidence to push the price up with long-term contractors.Asian Metal CopyrightBEIJING Asian Metal 7 Aug 06 - Japanese gallium market remains stable currently, but an official from a smelter made it available to Asian Metal that they want to increase the price, as the major consuming industry -- gallium arsenide industry, moves well.Asian Metal Copyright

These long-term contractors will start their new fiscal years in October, when the smelter will negotiate with these buyers to increase the price, in spite of worries that the price increase may not last long with smelters increasing outputs.

On a 100tpy of production capacity, the smelter plans to produce 80t of gallium 99.9999%min in 2006.