Supply-side factors dominate Ga prices

摘要

Temporary environmental restrictions on bauxite production in China sparked steep price rises for gallium at the end of 2020, pulling up prices in Europe despite Covid-19 hitting demand, while other smaller market forces may become increasingly influential in the coming years. Gallium metal is a by-product of alumina production from bauxite. Substantial reserves of bauxite and a large increase in gallium production capacity in China following the development of light-emitting diode (LED) applications — the biggest consuming sector — have kept the market well supplied for over 10 years.