2016 PREVIEW: Major strife ahead for minor metals producers in China

Last year was not an easy one for China's minor metals producers. But what lies ahead for these markets in 2016?

Firstly, on a macroeconomic level, 2016 is likely to be another tough year for the global economy, according to analysts. This will continue to weigh on the whole minor metals complex.
On top of this, oversupply will continue in minor metals markets in the coming year due to strong production volumes and high imports from previous years as well as the large stocks still sitting on the Fanya Exchange (FYME).

There are 3,629 tonnes of indium, 19,228 tonnes of bismuth and 92 tonnes of germanium on the exchange. This equates to about ten years of Chinese indium production, 1.3 years of bismuth output and 1.5 years for germanium. This will continue to pressure prices, making sharp price rises unlikely in these markets in 2016, sources have...

Published

Anna Xu

January 08, 2016

07:00 GMT

Shanghai