US Germanium Price Increases as The Demand from The Downstream Industries Surged Amidst Supply Sinking

At the end of January 2024, the price of Germanium experienced a surge in price trend as the demand from the downstream industries remained on a higher edge. The Global semiconductor and chip manufacturing giants, along with software industries such as Microsoft and Qualcomm Inc., have planned to release their latest technology, strengthening the increased demand for Germanium in the US spot market. Meanwhile, the availability of domestic inventories and warehouses has been on a lower edge since the Chinese ban on Germanium export. Meanwhile, the Democratic Republic of the Congo (DRC), has notably profited from the ongoing global Germanium crisis, being the alternate supplier of Germanium across the globe.

The supply curtailment of Germanium from the overseas Chinese government has been a major cause of concern among the semiconductor and electronics industries as China is noted to be the major producer across the globe. In the meantime, at this critical juncture, the Democratic Republic of the Congo unexpectedly asserted its possession of abundant gallium and Germanium resources. The Democratic Republic of the Congo (DRC) is seeking investors to work with the country's private sector, particularly in the extractive industry, from various nations. Several global investors such as Ivanhoe Mines of Canada, and several others have been noted as the modern investors for the upliftment in the domestic mining activity in Congo. The mineral deposits, including the Germanium resource, are expected to be worth USD 7 Billion, which would be used for infrastructural development projects. Furthermore, the House Africa subcommittee's Chairman proposed a bill mandating the development of a comprehensive US national strategy aimed at safeguarding the supply chains of vital minerals sourced from the Democratic Republic of Congo. The domestic mining company of Congo, Gecamines, has also announced to increase in the mining activity for Germanium in Congo, to somewhat stabilize its declining supply trend. Additionally, the US-based Cantex resources have also noted a significant rise in Germanium output along the Main Zone at North Rackla, Yukon.

According to the analysis by ChemAnalyst, the price of Germanium is anticipated to show a significant rise in price in the US spot market as supply constraints remain a major threat for the US-based semiconductor industries. The Democratic Republic of the Congo faces challenges such as political instability, corruption, and various other issues, all of which could impede the efficient development and utilization of its resources. Additionally, there is a lack of infrastructure and technological advancement in the country, further hindering progress. So, even if the Democratic Republic of the Congo (DRC) announces to have a high raw material supply, it would take a longer time to install proper technology and infrastructure for the extraction, mining, refining, and purification of Germanium.