China’s export curbs lead to decrease in gallium and germanium product shipments for second consecutive month

China’s export curbs lead to decrease in gallium and germanium product shipments for second consecutive month

The impact of China’s export restrictions on gallium and germanium products is becoming increasingly evident, as shipments of these materials have now seen a decline for the second consecutive month. In September, China exported a mere 1 kilogram of wrought germanium products, compared to no exports in August. Similarly, exports of germanium oxides and zirconium dioxide stood at 1,420 tons in September, a decrease from 1,034 tons in August. Furthermore, there were no exports of wrought gallium products in both August and September, a stark contrast to the 5.57 tons exported in September 2022. These export curbs were implemented in July, mandating exporters to acquire licenses for dual-use items with potential applications in both military and civilian sectors. As a result, certain Chinese companies have managed to obtain these licenses, while the spot price of germanium ingot remained steady in September and the price of gallium metal saw a 15% increase due to temporary supply tightness.

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China’s export curbs lead to decrease in gallium and germanium product shipments for second consecutive month

China’s export restrictions on gallium and germanium products have resulted in a decline in shipments for the second month in a row. These curbs have had a significant impact on the export of these essential materials, with notable decreases in shipments of wrought germanium products, germanium oxides and zirconium dioxide, and wrought gallium products. Additionally, the implementation of export restrictions has raised the significance of obtaining export licenses for gallium and germanium products. The spot price of germanium ingot has remained stable, while the price of gallium metal has increased.

China’s exports of wrought germanium products

In September, China’s exports of wrought germanium products amounted to 1 kilogram, compared to zero in August. This represents a notable increase in shipments from the previous month, indicating a slight recovery in export volumes. The export of wrought germanium products plays a crucial role in various industries, including electronics and optoelectronics. The gradual improvement in September’s shipments is a positive development for the industry, although it is essential to monitor the trend in the coming months.

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China’s exports of germanium oxides and zirconium dioxide

China’s exports of germanium oxides and zirconium dioxide in September reached 1,420 tons, compared to 1,034 tons in August. This indicates a substantial increase in export volumes for these materials. Germanium oxide and zirconium dioxide are essential components in various industries, including semiconductors and ceramics. The rise in shipments reflects the continued demand for these materials and showcases the resilience of China’s export industry amid export restrictions.

China’s exports of wrought gallium products

During August and September of this year, China did not export any wrought gallium products, in contrast to the 5.57 tons exported in September 2022. This significant decline in shipments is a direct result of the export restrictions imposed on gallium and germanium products. Wrought gallium products are widely used in the production of semiconductors, LEDs, and various electronic devices. The absence of exports in recent months highlights the challenges faced by Chinese exporters and the impact of export curbs on the gallium market.

Implementation of export restrictions on gallium and germanium products

In July, China introduced export restrictions on gallium and germanium products, primarily focusing on dual-use items with potential military and civilian applications. These measures were implemented to safeguard national security interests and ensure the appropriate use of these critical materials. To ship gallium and germanium products, exporters are required to obtain licenses, ensuring compliance with export regulations. These restrictions have significantly affected the export landscape and necessitate close monitoring of shipments and regulatory updates.

Obtaining export licenses for gallium and germanium products

Despite the challenges posed by export restrictions, some Chinese companies have successfully obtained export licenses for gallium and germanium products. Acquiring these licenses allows companies to navigate the export landscape more effectively and continue their business operations. The benefits of obtaining these licenses extend beyond mere compliance with regulations. They enable companies to ensure a steady supply chain, maintain customer relationships, and contribute to the growth of industries relying on gallium and germanium products.

Spot price of germanium ingot

September witnessed a stable spot price for germanium ingot. This indicates a steady market for germanium ingot, a material widely used in the production of infrared optics, solar cells, and fiber optics. Despite the export restrictions, the spot price of germanium ingot has remained consistent, indicating a sustained demand for this essential material. The stability in the spot price is favorable for industry players, as it allows for predictable pricing and planning.

Price increase of gallium metal

On the other hand, the price of gallium metal has experienced a significant increase of 15%. This price surge is primarily driven by temporary tightness in supply. Gallium metal is a crucial component in the production of semiconductors, detectors, and various electronic devices. The temporary tightness in supply has led to an increase in market prices, reflecting the demand and availability dynamics of gallium metal. Industry players and consumers should closely monitor the price fluctuations to effectively plan and manage their operations.

In conclusion, China’s export curbs on gallium and germanium products have resulted in a decrease in shipments for the second consecutive month. While there has been a slight recovery in shipments of wrought germanium products and an increase in exports of germanium oxides and zirconium dioxide, the absence of wrought gallium products in recent months highlights the challenges faced by Chinese exporters. The implementation of export restrictions and the requirement of obtaining licenses have reshaped the export landscape, leading to both challenges and opportunities for industry players. The stable spot price of germanium ingot provides some stability amidst the export restrictions, while the price increase of gallium metal underscores the temporary tightness in supply. The implications of these developments on gallium and germanium product shipments remain significant and should be closely monitored by those involved in the industry.

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