BEIJING: China’s July exports of germanium products more than doubled from June to their highest in six months, customs data showed on Sunday, as overseas buyers rushed to lock in supply ahead of export restrictions that took effect on Aug. 1.
China, the world’s top germanium producer accounting for more than 60% of global supply, shipped abroad 8.63 metric tons of wrought germanium products last month, surging from 3.29 tons in June and 41% higher than a year earlier, data from the General Administration of Customs showed.
China in July announced restrictions on the export of eight gallium and six germanium products, which are used to make semiconductors, effective from Aug. 1, citing national security reasons.
China exported 36.45 tons of wrought germanium products in the first seven months of 2023, a year-on-year rise of 66%, the data showed.
Germanium is a key material for fibre optic cables and is also used in high-speed computer chips and plastics, as well as for infrared radiation.
China’s exports of gallium rose to 5.15 tons from June’s 1.6 tons, although the July volume was 41% lower than the same month in 2022.
Gallium exports from January through July were down 51% on the year at 22.72 tons, the data showed.
The export restrictions fanned concerns that temporary supply tightness would emerge in markets outside China after August, and propelled a flurry of stockpiling before the rules took effect.
“We have seen growing overseas buying interest (for gallium) after the announcement of exports controls, all with the requirement that shipments need to be done ahead of August 1,” a Chinese gallium producer said.
Some Chinese exporters of gallium and germanium products are preparing the necessary documents to apply for export licences for dual-use items and technologies - those with potential military as well as civilian applications.
China’s Ministry of Commerce said on Thursday it had received some export licence applications for gallium and germanium products and was reviewing them in accordance with relevant laws and regulations.
Those that have already submitted applications are waiting for a reply from the Chinese Ministry of Commerce on whether they are able to get a permit, which typically takes 45 days.
“We expect to know by the middle of October at the earliest whether we will get the licence,” a Chinese germanium trader said.
Comments
Comments are closed.