Indium has risen sharply in price since the beginning of May. Find out more about the market dynamics, possible reasons for this and how indium compares to other technology metals.
Indium, an essential technology metal, reached a nine-year high at the beginning of May and is now at its highest price level since July 2015. Tight availability on the spot market and limited annual production of only around 650 tonnes have led to this remarkable price movement. China, which accounts for around 65 per cent of global production, is mainly responsible for the global indium supply. As the market for indium is relatively small, even minor changes in production or demand can cause significant price fluctuations.
No new fields of application, but rising prices
The current applications of indium, particularly in touch screens, flat panel displays and thin-film photovoltaics, have not seen an unusual increase in demand. In contrast to other technology metals such as hafnium, demand for which has increased due to the up-and-coming aircraft construction and nuclear power industries. increased at the beginning of 2023the demand for indium in the known areas of application remains stable. This suggests that other factors may have led to the current shortage and rising prices. It is possible that sellers are currently adopting a wait-and-see approach and observing market developments, meaning that less material is being offered.
Insight into the market mechanisms
The extraction of indium is closely linked to zinc production, as it is obtained as a by-product of mining. There is no primary production and recycling only makes a limited contribution to covering demand. The price spike for indium is reminiscent of the Developments in gallium and germanium in summer 2023as Export restrictions from China led to temporary supply bottlenecks and price increases. Indium is not currently affected by such export regulations. Nevertheless, such market mechanisms are evident, How sensitive the market is can react to strategic decisions and minor shifts in production or how a shortage of physical availability - even if only for a short time - can cause turbulence.
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