Decline in China’s Gallium and Germanium Exports as Restrictions Tighten

BEIJING – Recent customs data reveal a notable decline in China’s export volumes of gallium and germanium in March, a shift influenced by stringent export controls initiated in August last year. The decrease in outbound shipments of these critical tech materials highlights ongoing tensions between Beijing and Washington concerning high-tech supply chains.

In a move announced in July 2023, China imposed export restrictions on eight gallium and six germanium products starting from August 1. This decision comes amid growing disputes over the procurement of materials essential for advanced microchip technology.

March saw China, the leading global producer of germanium, exporting only 3.21 metric tons of its germanium products—both wrought and unwrought. This figure represents a decrease of 31.8% compared to the 4.7 tons exported in March of the previous year. However, this volume did mark a 16% increase from the 2.76 tons shipped in February 2024.

For the first quarter of 2024, total germanium exports summed up to 6.92 tons, plummeting 62.8% from the 18.6 tons recorded during the same period in 2023.

In terms of gallium, China’s exports stood at 1.21 tons for the wrought and unwrought products in March, down significantly by 81.3% from the 6.48 tons exported in March 2023. This volume was marginally higher by 1.2% compared to February’s exports of 1.2 tons.

From January to March 2024, China’s total exports of gallium products reached 3.97 tons, showing a decrease of 74.1% from the same quarter the previous year.

Despite the drop in exports, domestic prices have remained resilient. Analysts attribute this stability to increased demand, limited supply of raw materials, and heightened speculative buying activities. As of April 19, the domestic spot price for germanium ingot in China was reported at 9,650 yuan ($1,332.82) per kg, reflecting a 2.7% increase this year and a 2.1% rise since last July. Meanwhile, gallium metal’s spot price has surged to 2,195 yuan per kg, marking a 14.6% increase this year and a notable 31% rise since July last year.

These dynamics underscore the complex interplay between export controls and market forces, as China navigates the challenges of supplying critical materials amidst global tech competition.

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