The inquiries of Metalloids from the downstream semiconductor industry have heightened over the last couple of months amidst the ongoing hostilities between Russia and Ukraine. Russia and Ukraine are both key suppliers of raw materials such as Neon gas, used in lithographic operations while manufacturing the Semiconductor chipsets. The uneven recoveries from the downstream industries due to the losses endured during the pandemic kept the market dynamics in gyration as the demand outlook outstrips the supply capabilities.

The soaring offers for Metalloids are primarily driven by the hiked quotations from the downstream semiconductor industry. Although, the global shortage of semiconductor chips began in the second quarter of 2020, pushed by persistent inquiries from the automotive, and consumer electronics sectors. Even though the global Semiconductor market is led by Taiwan and South Korea for Semiconductor chipset manufacturing, the resurgence of COVID cases in China has increased the traffic in the East and South China sea amidst slower onloading and offloading activities at the major ports, besides uplifting the freight cost in the APAC region. According to market participants in the Asia Pacific, due to the shortages of raw material and swinging dynamics for Semiconductor chipsets, the average delivery time climbed from nearly 2 days to 27 weeks, and the backlog of deliveries piled up.

The conflict in the eastern European region between Russia and Ukraine, Covid-19 lockdowns in parts of China, and an earthquake in Japan are the key factors that have a significant impact on the Mettaloids industry during the first quarter. Whereas the Indian authorities claimed that the supply-side issue has been altered into a demand-side problem as economies began rebounding, raising consumption of electronic products.

As per ChemAnalyst, “The prices of Metalloids are expected to soar due to the high demand from downstream sectors against the limited availability. The disruptions in the supply of Mettaloids in China and increased delivery times in March have peaked at a new high. Thus, the current sentiments are likely to prevail for a significant amount of time besides delaying the supply-demand balance recovery over the current demand dynamics”.