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Prices for gallium — a metal used in semiconductors and advanced technology — jumped to their highest level since 2011 following export restrictions recently imposed by China.
Gallium prices assessed by Fastmarkets rose to $595 per kilogram on Friday, a 17% increase over the previous level on Dec. 11.
The critical mineral has moved higher after China banned exports of several metals to the US earlier this month, a sign of rising trade tensions between the two countries. China accounted for 98% of global gallium production in 2023, according to the US Geological Survey.
While the market for gallium is relatively small, it has important applications in compound semiconductors, which combine multiple elements to improve transmission speed and efficiency. It’s also needed for TV and phone screens, solar panels and radar equipment.
Beijing had already placed initial controls on exports of the material in August 2023, driving prices higher and upending trade flows. Gallium prices have more than doubled since the curbs were announced earlier last year, according to Bloomberg calculations from Fastmarkets data.
(By Jack Ryan)
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