International gallium buyers are intensifying their hoarding, causing tight supply and demand in the industry, leading to a 27% increase in global gallium prices

On July 12th, Cailian News Agency reported that Freiberger Compound Materials, the world's largest purchaser of gallium, recently stated that after China plans to implement export control policies on gallium, its customers are frantically hoarding special semiconductor wafers produced by the company using gallium metal, resulting in a very tight supply and demand situation in the industry. It is estimated that Freiberger consumes tens of tons of gallium annually, accounting for approximately 10% of global production, and its raw material supply is almost entirely dependent on China. Michael Harz, CEO of Freiberger, stated that the company's Chinese suppliers are currently providing the necessary data to obtain export licenses. Delivery will be suspended when export controls take effect on August 1st, and will resume approximately one month later. However, there is currently no exact and reliable information available. It is reported that after China announced the implementation of export controls on gallium and germanium related items, many international gallium buyers have started to intensify their hoarding. Last week, global gallium prices increased by 27%. Gallium and germanium are both high-value products with small production, and traders typically do not hold large amounts of inventory.