Germanium Prices Trend in the second quarter of 2023 | ChemAnalyst

For the Quarter Ending June 2023

North America

During the second quarter of 2023, the price of Germanium in the United States experienced a decline. This can be attributed to a combination of factors, including worsening economic conditions and a slowdown in the downstream automotive and semiconductor industries. In June, a series of bank failures across the nation led the US government into an economic downturn, triggering a debt crisis. Rapid inflation followed suit, prompting the local government to raise interest rates in an attempt to stabilize the situation. This move led local buyers to become cautious about placing substantial orders. The semiconductor industry’s decline, coupled with a drop in electric vehicle sales, resulted in reduced semiconductor chip production and an increase in local inventory within the US spot market. The dip in Germanium Ingot’s price is anticipated to adversely affect the US semiconductor industry, a significant consumer of the metal. However, the long-term prospects for Germanium Ingot appear positive, with expectations of increased demand for the metal in the years to come.

Asia Pacific

The price of Germanium in India exhibited a mixed trend during the second quarter of 2023, influenced by several factors. Decreased demand from the downstream semiconductor industry and challenging economic conditions in overseas US and European markets played a role. The sluggish state of the semiconductor industry stemmed from reduced chip demand originating from overseas automotive sectors. The overseas automotive industry’s decline, driven by falling vehicle sales and diminished chip consumption for electric vehicles, contributed to this situation. Meanwhile, Chinese suppliers were flooding the market with abundant quantities at relatively lower prices, anticipating potential export restrictions on Germanium from China. Weak demand from electronics and solar industries also contributed to a lower demand from buyers. Although the Indian government’s recent agreement offers a glimmer of hope for an upturn in Germanium Ingot prices in the upcoming months, uncertainty remains.

Europe

The price of Germanium in Germany underwent a decline during the second quarter of 2023, primarily due to uncertain economic conditions both domestically and in overseas markets. June saw the German economy entering a recession as inflation rates continued to rise. The prevailing weak market sentiment led buyers to place substantial orders, given the lower price levels. With overseas Chinese mills flooding the market with surplus supply at relatively lower prices, Germanium inventory levels remained high, thus exerting downward pressure on Germanium producers. Simultaneously, the downturn in the downstream automotive industry due to weak economic factors led to decreased electric vehicle sales. This, in turn, reduced demand for semiconductor chips and contributed to an increase in the local Germanium inventory. The resulting decline in Germanium Ingot prices is expected to negatively impact the German electronics industry, a major consumer of the metal. However, the long-term outlook for Germanium remains positive, with expectations of increased demand in the coming years.

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