A little-known metal spikes as China-US trade showdown hits home

Bismuth — a little-known but critical metal used in defense industries — has spiked to a decade-high after China added the commodity to an export-control list in retaliation for US tariffs.

The metal, which is also used in automotive coatings, paints and low-temperature alloys and castings, has surged 38% to $8.25 a pound since the curbs were imposed on Feb. 4, according to data from Fastmarkets Ltd. The restrictions mean that local exporters must first obtain permission for overseas sales.

Commodities from oil to metals have been rocked in recent weeks, with new US President Donald Trump imposing, or threatening, a raft of trade levies, and some targets pushing back. After Washington imposed blanket 10% tariffs on all Chinese goods, Beijing’s response included curbs on a suite of five metals, covering bismuth, plus tellurium, molybdenum, indium and tungsten.

The moves have helped to boost prices, and built on earlier restrictions that covered germanium, gallium, and antimony, which are other niche-but-vital metals. China is the world’s leading bismuth supplier, accounting for 80% of output, and about two-thirds of US imports came from the nation in recent years.

“Chinese bismuth ingot exports are set to halt in the near term given exporters need time to apply for licenses,” said Chen Qiqi, an analyst at Mysteel Global. Traders are hoarding the metal in anticipation of further price gains, Chen added.

Bismuth ingot prices have risen 7% to 88,000 yuan ($12,137) a ton since the curbs were brought in, according to Asian Metal Inc.

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