The sharp rise in European prices for bismuth and indium metals slowed as sellers accepted lower offers to capitalize on the market’s rapid gains in the second quarter.
Bismuth and indium prices surged in the second quarter due to Chinese speculation and tighter supply of raw materials. European sellers raised their offers to keep pace with rising replacement costs. However, a two-week period of profit-taking by sellers led to a slight decline in the prices of both metals.
European bismuth prices increased by 77% from April to June, but they fell in early July as traders offloaded long-held, lower-cost materials at discounted prices, taking some profits from the recent price rally.
Similarly, indium prices hit a nine-year high in June, reaching $373-413 per kg, before settling slightly lower at $373-401 per kg. Prices fell after a decline in the domestic Chinese market, prompting European sellers to reduce offers slightly and secure gains from the 35% price increase in the second quarter.
Both metals saw rapid price increases during the second quarter due to rising replacement costs in China, despite weak demand from European consumers.
Chinese export prices for bismuth rose by 63% from April to June, stabilizing at $6.14-6.26 per lb. Domestic Chinese bismuth prices also rose, driven by environmental inspections limiting the supply of bismuth concentrates from lead and zinc refineries. Speculators and investors, anticipating further price increases, took large positions, amplifying the price rise.
Environmental inspections also restricted the supply of indium feedstocks from China’s Hunan, Guangdong, and Guangxi provinces. Nevertheless, the rise in indium prices was mainly driven by activity on the Zhonglianjin trading platform. Chinese export prices peaked at $371-391 per kg in mid-May but fell to $359-374 per kg by June as activity on the Zhonglianjin platform slowed.
Speculation Drives Up Minor Metal Prices
The sharp price increases in bismuth and indium have sparked speculation that other minor metals could follow suit, as selenium, tellurium, and germanium prices are already on an upward trend.
European selenium prices were assessed at $10.40-13.10 per lb today, up from $10.30-12.40 per lb at the end of June. Selenium prices rose by about 7% during the second quarter, supported by higher replacement costs in China and steady demand from consumers and traders.
Similarly, tellurium prices increased by 13% in June, with the latest assessment at $91-99 per kg in duty-unpaid Rotterdam, up from $87-96 per kg on July 2. Sellers raised offers due to tight supply in European warehouses and rising prices in China.
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