Minor Metals: Supply tightness boosts indium prices to near nine-year highs

DOWA Holdings

08/05/2024 13:14

May 8 (Reuters) - Indium prices soared this month to
their highest levels in nearly nine years as a surge in demand
for the metal used to make touch screens for mobile phones
triggered a rally reinforced by concerns about shortages.
    According to traders, indium prices  IND-ING-LON  on the
spot physical market averaged around $345 per kilogram outside
China in early May, the highest since July 2015, compared with
$244 per kg in March.
    Robust demand coinciding with planned maintenance at Teck
Cominco's operation in Canada expected through the second
quarter, and a lack of raw material for processing into zinc and
byproduct indium, has led to soaring prices, the traders said.
    The indium price jump has highlighted scarcity of supplies
outside China.
        
    WHY IS INDIUM IMPORTANT? 
    Indium is used in television and computer screens. It is
largely used in flat panel display units in the form of indium
tin oxide (ITO), and in fiber-optic technology in the form of
indium phosphide (InP).
    
    KEY QUOTES 
    "Indium is seeing increased demand from consumers who are
suddenly getting concerned that they might not get supply in the
future," a trader said.
    "I have been involved with indium for over 20 years and I
have never seen the market so dependent on China," another
trader added. 
        
    CONTEXT 
    China is the world's largest producer of indium. Data from
U.S. Geological Survey (USGS) shows Chinese supplies at 650 tons
last year comprised 65% of global supplies. 
    According to data provider Trade Data Monitor (TDM), China's
indium exports jumped 78% to 57 tons in March, after three
months of falling shipments. 
    However, China's March exports were 53% below those in the
same month last year, TDM data showed.
    Additionally, zinc prices in London  CMZN3  rose nearly 20%
last month, driven by tightness in raw material supplies.

 (Reporting by Anjana Anil and Seher Dareen in Bengaluru;
Editing by Pratima Desai and Mark Potter)
 ((Seher.Dareen@thomsonreuters.com;))