Indium prices static as Fanya stocks hit 1,000 tonnes

Indium prices were steady on Friday May 31 as sellers outside China continued to let material go at levels far below the prices seen on the Kunming Fanya Metal Exchange, where more than 1,000 tonnes of indium are stored.

Metal Bulletin indium prices were $490-550 per kg on May 31, unchanged from May 29 but up $10 at the high end week-on-week.

The arbitrage between prices on Fanya and in the physical market outside China widened further on Friday May 31 as physical prices paused and quotes on Fanya continued to rise.

Data from the exchange showed there were 1,006 tonnes stored on the exchange on Friday, while prices finished the day equivalent to $994 per kg.

As such, the value of the stock stored on Fanya has now exceeded $1 billion, while prices quoted by the bourse are fast approaching $1,000 per kg, or $1 million per tonne.

Indium exports from China, the world’s largest producer, have ground to a halt as suppliers have sold on to Fanya and the Wuxi Stainless Steel Exchange, where prices also trade comfortably above prevailing prices in the international market.

“When we speak to suppliers in China, it’s clear they’ve got no interest in exporting at the moment,” one consumer told Metal Bulletin. “They’ll give you a quote at $570, but it’s just a polite way of getting you to leave them alone.”

Outside China, market sources reported strong prices for small volumes sold in the USA and Europe, while in Asia some suppliers were still willing to release material below $500 per kg.

Mark Burton
Twitter: @mburtonmb

Mark Burton


Mark Burton

May 31, 2013

16:30 GMT