Indium dips in China

Prices for indium ingot have dipped by around Rmb200/kg from the previous level due to the sluggish demand on the spot market, sources close to Chinese market participants told Metal-Pages.

Values for the 4N metal at present are hovering around Rmb5,300-5,400/kg (US$677-690/kg), in comparison to levels of about Rmb5,500/kg over the past weeks.

A Hunan-based consumer confirmed the situation. “We have bought some metal at around Rmb5,200-5,300/kg ($664-677/kg) over the past days,” said an executive of the company, claiming that it would now like to purchase refined metal for further processing rather than buy crude indium as there is only a small price difference between the two materials.

According to industry insiders, prices for crude indium have also decreased by around Rmb200-300/kg over the past weeks and are currently at approximately Rmb4,800-4,900/kg.

“Spot purchasing is so quiet, especially from Japanese buyers,” said an executive from a Hunan-based producer, revealing that its current quotation for 4N material is $720/kg for overseas buyers, but only a few bids have been received.

Recently the rumour of an export tax being imposed on indium in the coming year has been spreading within the home market, but some sources believe that possibly some other methods to control indium export will be adopted next year, such as issuing export quotas or licenses, instead of adding an export tax.

Western traders report that as the holiday period approaches, only a few businesses are taking place for small quantities but these nevertheless are tending to be concluded at firmer prices, with some at over $750/kg.

However, the major players in the market in Japan and China are taking a rest over the year-end from the stalemate that has existed between the Japanese consumers and Chinese suppliers for some time. How the market will develop in the New Year will depend largely on how they resolve this situation.