Prices of germanium, a crucial metal in chipmaking, skyrocketed to a record high in China on Wednesday. This surge comes amidst speculation of potential state buying by the Chinese government. China, supplying 60 per cent of the world's germanium, uses the metal in various applications like fiber optic cables, solar cells, and infrared technology. Notably, the country implemented controls on germanium and gallium product exports last August. Spot prices for germanium ingots have witnessed a dramatic rise in the past month, jumping nearly a third to an all-time high of 13,250 yuan ($1,826.48) per kilogram on Wednesday, according to data from Shanghai Metals Market (SMM). This represents a 38 per cent increase since the export restrictions were imposed, defying initial expectations of a price cap due to increased domestic supply. China's germanium exports, including both wrought and unwrought products, plummeted by a significant 55 per cent year-on-year in the first five months of 2024, reaching 11.08 tons. However, customs data shows that the value of these shipments skyrocketed by nearly 300 per cent.
