Number 49 | April 2015
Newsletter for Investors
The calm before the storm?
Rare Earths market on a rollercoaster
Indium prices still heading south
After the Chinese New Year prices for most elements
With prices continue to fall, most consumers stay on the
moved up sharply. New activities from Fanya along with
side-line and only buy hand to mouth. A main reason is
speculation for another program of national stockpiling
the Chinese Fanya Metal Exchange whose investment
drove prices up. But so far Chinese Government has not
demand slowed down significantly compared with the
made any firm announcements yet. The same applies
level before November 2014. However, outlook for future
for the resource tax which is expected to stand in for the
Indium demands is still very promising. As such Indium
abolishment of export taxes in early May this year. In a
remains a metal to look at.
nutshell it leaves market participants with a lot of uncertainty. Consequently consumers have placed their further
procurement plans on hold. As a result prices have faced
Gallium market still flat
downward pressure once again.
After having peaked in the middle of 2011 Gallium prices
However, ongoing consolidation should also have some
crease of production capacity. There is no doubt that soon-
impact on prices. With smaller producers being absorbed
er or later demand will justify today’s production capacities
into larger companies the illegal part will continue to
but utilisation was just going too quickly. Bearing in mind
shrink and help prices to recover. These days Beijing has
that 4 years ago price was 5 times higher than today this
released its first batch of production quotas of which 90%
gives room for speculation. According to various producers
are being allocated to the six large state-controlled groups.
there is no profit to realize at today’s price level.
And from an investor’s perspective one has to look at it
But a number of new technologies and applications are
from a different angle. Bearing in mind a very positive
going to drive up demand significantly in coming years.
outlook for some of the elements and in particular for the
There are already signs for a recovery by the end of the
magnet metals this may be a good time to invest.
year as CIGS technology has made a next step towards
have kept falling and failed to recover due to a rapid in-
market penetration.
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