Gallium rebound needs time
2005-02-24 09:17:46 【Print】
BEIJING(Asian Metal) 24-Feb-2005 Different from the Chinese suppliers, Japanese gallium producers remarked that the current market is not so good as most Chinese have expected. They believed that time is needed for the recovery of the market.
"The market is moving very slowly at the moment in Japan, although the offered price went up slightly by about $20/kg recently. And due to the different quantity of impurity, the price of gallium metal 4N ranges between $300/kg and $340/kg. The raise of the offer is not caused by the real demand but from the manipulation of suppliers who plan to sell their material at higher prices, "said a Japanese gallium producer.
The source commented, "Compared with Chinese suppliers, we are more closer with Japanese consumers. We can negotiate with the buyers more deeply. While for the time being, we are still waiting as consumers would keep chewing their material in hand in the coming weeks. I think maybe over one month later the market would be clearer as the consumers would used up the material they held and come back again." Presently, the smelter is only operating at half of its production capacity on a basis of 20tpy for 4N and 100tpy for 6N.
Although Chinese suppliers said that the demand from the domestic permanent magnet stimulates the gallium market, the source felt it is impossible. "As far as I know, the demand from that industry is just very small, maybe just over ten tonnes every year. "
The source thought the market this year would not be so good as last year in view of the slow growth rate for cellphone. "Last year, the output of cellphone rose by 8-9% , while it is expected to be only 3-4% this year. As a major consumption industry, it would lead to the decrease of gallium metal demand, "commented the source.
In view of the coming fiscal month in April, the source thought consumers would be prudent to purchase considering the high prices.
