Indium prices fell to six-year lows on Friday July 31, as producers felt the pressure from buyers looking to secure material at low levels.
Metal Bulletin’s free market indium ingot price lost $35 on the bottom and $15 on the top to finish the session at $300-375 per kg, a level not seen since July 2009.
With a large number of pricing points, all below the previous high, the top end of the indium price slipped to $375 per kg. Several sales were concluded below this level, down to as low as $300, where a large deal was concluded, thus the range was also widened.
Producers reported that they have been trying to resist the pressure from buyers to lower their prices, but are concerned that they will have to do so, as well as cutting production.
“Producers are reluctant to lower their prices for sales,” a Chinese producer said. “Now it’s a really thin time for manufacturers as they are losing money. We will also have to reduce production if prices go down further.”
Buyers confirmed that they had been pushing producers to lower prices and confirmed that many market participants are still worried about the spectre of Fanya’s stocks.
“We’ve seen the effect that rumours about the Fanya exchange have on prices,” one European buyer said. “Imagine what would happen if the stocks actually came into the market!”
James Heywood email@example.com Twitter: @jamesheywood_MB