Indium Market Update - September 2017

Since peaking at over US$ 700 per kilogram in 2014, indium prices have steadily declined for three years. Efficiency gains in ITO sputtering and greater recycling of indium, along with increased production from Korea, have kept the global market in over-supply since the collapse of the Fanya Metal Exchange.

The summer months of 2017, however, showed some solid footing for indium prices, as they crept up from lows of near US$ 175 per kilogram to around US$ 200 per kilo. 

These price gains were mainly due to the recent environmental inspection campaign in China, which has led to the temporary closure of numerous smelters. While environmental inspections are commonplace in China, their affect on metal prices is usually short-lived. This year, however, the campaign has been particularly lengthy and vigorous.

Smelter closures have affected the output and prices of numerous minor metals, including indium, gallium and germanium.

The fundamentals for indium still do not bode well for long-term price strength. The market will again will likely have an excess of production in 2017 but, for the time-being, consumers have not had any issues with taking spot material at slightly higher prices.