Germanium prices have risen both in China and the ROW as export restrictions continue. 

In July 2023, China’s Ministry of Commerce (MOFCOM) and the General Administration of Customs (GAC) posted notices indicating that starting on 1 August 2023, eight items related to gallium and six items related to germanium could no longer be exported without state approval in order to “safeguard national security interests”.  

The restrictions had a significant impact on the germanium market. Exports from China were limited in the months after the restrictions came into effect but normalized again from December 2023 with regular buyers in Germany, Russia and Belgium receiving material. However, there have been no exports to the USA since the restrictions came into force and global 2024 exports are set to be lower than 2022 and 2023 levels.  

The impact of the export restrictions on germanium prices differed in China and the ROW.  In China, prices stayed relatively stable after the introduction of restrictions, while in the West, prices tracked upwards owing to uncertainty and increased difficulty in sourcing material (see chart).   

However, Chinese prices also started trending upwards in July 2024 and now sit US$2,600/kg – similar to prices in the USA. The reason appears to be increased government stockpiling in China. Market participants have noted the acquisition of around 100t of Ge by the Chinese Government which represents around 66% of global annual germanium production.   

Project Blue notes that stockpiling in an already tight and geopolitically charged market could represent conditions which elevate prices for some time to come.  

This is not the first time that stockpiling activities have had an impact on germanium prices. Stockpiling also led to prices rises back in 2011 (see chart) when the Fanya Nonferrous Metals Exchange was launched in Kunming in southwest China’s Yunnan Province. Fanya began acquiring germanium in July 2011, and considerable stocks were built up until 2015.   

The exchange froze transactions and members’ accounts in 2015 after experiencing “liquidity” problems and was later taken over by Chinese government investigators. After the exchange was wound down, Chinese company Kunming Rongke was named as the buyer of various stocks. Vital Material later confirmed that it had purchased the material through Kunming Rongke, taking ownership of 92.31t of germanium in 2019 and 2020. For context, this represented 65% of annual global germanium consumption in 2020 and 56% of consumption in 2023.