This Critical Material Jumped to Highest Levels in More Than A Decade Following China Export Curbs

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Published on: Dec 13, 2024
Author: Caroline Kong

Earlier in December, the US Department of Commerce announced a new round of chip sanctions against China, completely banning the export of high-end chips to China.

The next day, the Chinese Ministry of Commerce announced the Control Notice on the export of dual-use materials to the United States, clearly stating that the export of germanium, gallium, antimony, superhard materials and graphite to the United States was strictly controlled.

According to foreign media reports, the United States has not mined gallium itself since 1987, and China currently supplies 54% of the United States germanium and 53% of gallium, which are key materials for semiconductor, infrared technology, optical fiber, photovoltaic and other industries.

After China recently imposed export restrictions, the price of gallium jumped to its highest level since 2011. According to Fastmarkets, the price of gallium rose to $595 per kilogram on Friday, up 17 percent from December 11.

By 2023, China accounted for 98 percent of global gallium production, according to the U.S. Geological Survey. This means that after China’s export restrictions, it’s almost impossible for the United States to find alternative sources of Chinese supplies in the short term.

The price of gallium has more than doubled since the Chinese restrictions were announced early last year, according to a Bloomberg.

The Washington Post pointed out in a report on December 11 that with the gradual implementation of China’s export restrictions, the price of gallium materials in the international market has soared, and the current price has risen by 15 times compared with 2019, forcing the relevant enterprises and the military industry in the United States racking their brains to “search” gallium materials globally.

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