+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
 
News Article

Low prices force cuts in gallium production

GEO Gallium has reduced production at its German facility to one-third of its capacity.

Gallium producer GEO Gallium SA, a subsidiary of GEO Specialty Chemicals, says that it has reduced production at its Stade facility in Germany to one-third of total capacity.

GEO’s president and CEO George Ahearn said: “The market has been oversupplied and prices have fallen since 2001 to levels that make production unattractive.”

“If we operated a large alumina plant like many other producers, we would shut down completely until the market came back into balance,” he added.

Terry Guckes, the company’s VP for electronic chemicals, added that Geo had deferred its investment in a similar facility at Pinjarra, Australia, and has no plans to open the plant.

“Following the spike in prices in 2000-2001, additional capacity was built which the market never needed. The downturn in demand coupled with this added capacity has reduced prices to unprecedented levels,” said Guckes.

“We will continue to evaluate conditions in the gallium market to determine whether further reductions in output are warranted,” he added.

Gallium is found in very small concentrations in rocks and ores of other metals, and is mostly extracted as a by-product of bauxite treatment. World primary production was estimated to be 64,000 kg in 2003, according to the latest figures from the US Geological Survey.

World production peaked at 93,300 kg in 1998, and recovered after a drop in 1999 to reach 90,000 kg in 2000. Unit value dropped from an average of $640,000 per metric ton in 2001 to $530,000 per metric ton in 2002.

×
Search the news archive

To close this popup you can press escape or click the close icon.
×
Logo
×
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: