After gallium prices attempted to wake from their slumber in October, market disinterest forced them back down in November. By the end of the month, prices had returned to the US$ 290-310/kg range (FOB 99.99% min.) where they have been for much of second half of 2012.
The story continues to read the much like it did back in the spring: Significant production capacity increases coming on-line at a time of struggling economic growth have resulted in the lowest spot prices seen in years.
Although forecasts remain optimistic about growing demand from gallium's core markets, electronic wafers and LEDs, so far the market has been unable to digest the roughly 100MT per annum increase in production capacity that has recently become available.
Two questions remain: When will greater demand for gallium materialize? And will producers be able to wait out the storm until it does?
