China’s restrictions on the export of Gallium and Germanium products have resulted in a decline in international shipments of these chipmaking metals for the second consecutive month, according to customs data for September. In August, China exported no wrought gallium products, and in September, there were also no exports. However, in September 2022, China had exported 5.57 tons of gallium products. As for germanium products, exports of wrought germanium stood at 1 kilogram in September, compared to zero in August. In July, prior to the restrictions, shipments of wrought germanium products had surged to 8.63 metric tons. Under the customs code for “germanium oxides and zirconium dioxide,” exports of these products totaled 1,420 tons in September, up from 1,034 tons in August. It is unclear whether these shipments consisted solely of zirconium dioxide or also included some germanium oxide.

The restrictions on gallium and germanium exports were announced by China in July and went into effect on August 1. These restrictions apply to eight gallium and six germanium products and are part of the ongoing trade dispute between China and the United States over access to materials used in high-tech microchip production. Exporters of gallium and germanium products now need to obtain an export license for dual-use items and technologies, which have both military and civilian applications. Some Chinese companies have already obtained export licenses for these products, according to the Ministry of Commerce.

The impact of these export restrictions can be seen in the prices of gallium and germanium. The spot price of germanium ingot remained unchanged at 9,700 yuan per kilogram in September, while the price of gallium metal increased by 15% to 1,905 yuan per kilogram. This increase in gallium price is attributed to temporary tightness in supply due to improved demand and a delay in the commissioning of new capacity.

In the first nine months of 2023, China’s exports of wrought germanium increased by 47.4% compared to the previous year, totaling 36.49 tons. On the other hand, shipments of wrought gallium fell by 61.9% to 22.72 tons during the same period.

In summary, China’s export restrictions on gallium and germanium products have significantly impacted international shipments of these chipmaking metals. The restrictions require exporters to obtain an export license for dual-use items and technologies. While some Chinese companies have obtained these licenses, the overall export volumes have declined. This has resulted in stable prices for germanium and an increase in the price of gallium due to temporary supply tightness.

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