Surging International Price for Rare Metals

International market price surges for rare metals made as byproduct of nonferrous metal smelting. Price of gallium, which is byproduct of aluminium smelting, increased by 18% to more than US$ 800 per kilogram last week. The price was the highest level in 9 years and 7 months. Price of indium, which is byproduct of zinc, is around US$ 650 per kg, which increased by around 15% last week and hit 2 years and 8 months high. The market price is expected to increase more partly due to volatile nature in the market.

International gallium market price is US$ 800-850 per kg, which is 2 times higher than a year ago level. The metal is used mainly for gallium arsenide semiconductor, the demand of which keeps high level due to strong demand for high performance cell phone.

New plant and expansion projects are under construction for the semiconductor in Asia. The demand also increases for copper indium gallium selenide photovoltaic battery. Under the strong demand, the traders increase the offer aggressively. World gallium demand is around 200 tonnes per year. The market price is volatile with small wave of transactions due to the small market.

Indium market price is US$ 625-690 per kg. A source in Japanese trading firm said the spot offer is very limited recently. Some watchers see the traders try to increase the price level with expectation for higher demand.