Due to new export restrictions on the two chipmaking metals, China’s exports of germanium and gallium goods in August dropped to zero, according to customs data released on Wednesday.
Compared to 8.63 metric tons in July, when quantities more than quadrupled from June as foreign purchasers scrambled to lock in supply before the limitations, Beijing exported no wrought germanium goods in July.
Additionally, no wrought gallium items were exported in August. The report showed that exports in July were 5.15 tons, compared to 7.67 tons in the same month in 2022.
The latest shot in an intensifying conflict between Beijing and Washington over access to resources used to produce high-tech microchips was fired in July when China announced limits on the export of eight items made of gallium and six products made of germanium beginning on August 1.
According to the new regulations, exporters of germanium and gallium goods now have to seek an export permit for products and technologies with possible dual uses in the military and the civilian sector.
According to a Chinese germanium merchant and manufacturer who requested anonymity due to the subject’s sensitivity, permit applications are processed in around 45 working days.
The merchant continued, “We did not export volumes abroad last month since we await a permit.
Last month, Chinese spot gallium prices fell as stockpiles grew on the domestic market due to export restrictions and weak demand.
According to information from Shanghai Metals Market (SMM), the spot price of gallium metal decreased by 9% over the month to 1,655 yuan per kg on August 31.
However, due to a reduction in supply, the spot price of germanium ingot increased by 1% over the month to 9,700 yuan per kg at the end of August, according to SMM data.
Chinese shipments of wrought germanium increased by 58% on the year to 36.45 metric tons in the first eight months of 2023, while shipments of wrought gallium decreased by 58% to 22.72 tons from January to August.
