The impact of quantitative easing has pushed international prices for most minor metals higher over the past month. The current financial environment, along with expectations of an increase in seasonal demand for indium, has resulted in Chinese indium prices rising to around US$ 525-550 per kilogram. Producers and traders in China, who have been holding most of the market’s excess inventory, are hoping that Christmas sales of touch screen and other LCD display units will result in greater demand – and higher prices – for indium, as producers re-stock inventory in early 2011.
Given the current market and expectations for indium prices, SMI Ltd. expects to see indium prices of between US$ 525-575 per kilogram for the remainder of 2010. While the potential remains for indium to reach US$ 600 per kilogram in the first quarter of 2011, this will be heavily dependent upon US monetary policy over the coming months and LCD sales during the holiday season.
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