Economic Impact: China’s Gallium and Germanium Exports Decline in March

Export Restrictions Hit Gallium and Germanium Exports

China’s Export Data Revealed

In March, China’s exports of gallium and germanium products saw a decline from the previous year, according to customs data released on Saturday. This decrease underscores the impact of export controls implemented since August last year.

Export Restrictions Timeline

Tensions Between Beijing and Washington

In early July 2023, China announced export restrictions on eight gallium and six germanium products, set to take effect on August 1. This move came amidst escalating tensions between Beijing and Washington concerning access to materials essential for high-tech microchip production.

Decline in Exports

March Export Numbers

In March, China’s largest germanium producer exported 3.21 metric tons of germanium products, a 31.8% drop from the same period in 2023. However, the volume increased by 16% from February, reaching a total of 6.92 tons in the first quarter of 2024 – a substantial 62.8% decrease from the previous year.

Impact on Gallium Exports

March Export Figures

China also saw a significant drop in gallium exports, with 1.21 tons shipped in March – down by 81.3% compared to 2023. The total gallium exports for January to March 2024 stood at 3.97 tons, reflecting a 74.1% decrease year-on-year.

Market Resilience

Support Amidst Export Challenges

Despite lower export volumes, domestic prices for gallium and germanium have remained stable. Analysts attribute this resilience to improved demand, limited raw material supply, and increased speculative buying activities in the market.

Price Trends

Rising Spot Prices

As of April 19, the spot price for germanium ingot reached 9,650 yuan per kg, while gallium metal was priced at 2,195 yuan per kg – both showing significant increases since last July. These price hikes signify ongoing market dynamics and demand-supply imbalances.