SMM January 3 News: The domestic germanium market prices continued to pull back, with low-priced resources of germanium dioxide and germanium ingots frequently appearing in the market. The price of germanium dioxide has driven germanium ingots weaker, and the overall germanium market prices have maintained a continuous downward adjustment trend. Many market participants indicated that, from the supply side, as the Chinese New Year holiday approaches, sellers continue to increase shipments to reduce inventory and realize cash. Meanwhile, with a significant increase in germanium raw materials impacting the market, the expanded supply of raw materials has also added to the overall supply pressure on germanium from the source.
From the demand side, terminal buyers' enthusiasm for purchasing has also noticeably declined as the Chinese New Year approaches. Based on recent order trends, stockpiling for infrared and other end-user applications has significantly decreased, mainly because buyers have adopted a wait-and-see sentiment as germanium prices have weakened recently. This has led to overall market demand remaining sluggish and insufficient buying interest. Suppliers have also reported increased difficulty in shipments recently. Some market participants admitted that, due to the earlier Chinese New Year this year, market shipment efforts are expected to intensify before the end of January. Therefore, under the combined influence of supply and demand, the prices of germanium ingots and germanium dioxide are highly likely to continue declining, with even the possibility of an accelerated decline. Currently, the average price of germanium ingots is 17,250 yuan/kg, and the average price of germanium dioxide is 11,750 yuan/kg.
