Understanding the Recent Surge in Bismuth Ingots Prices

In recent months, the bismuth market has experienced a significant price surge, driven by various market dynamics. As of mid-July, the mainstream price for bismuth ingots with a purity of 99.99% has escalated from USD 3.69/lbs (FOB Chinese Port) in early May to an impressive USD 6.28/lbs (FOB Chinese Port) in Mid July. This notable increase highlights several underlying factors influencing the bismuth market, particularly in China, which is a major player in global bismuth production.

Key Drivers of the Price Increase

1. Limited Stock Availability: Chinese bismuth producers are grappling with limited stock levels, creating a scarcity in the market. This shortage is a primary factor driving up prices.
2. Rising Raw Material Costs: The cost of raw materials needed to produce bismuth ingots has surged, with producers passing these increased costs onto consumers.
3. Cautious Purchasing Behaviour: Downstream consumers are adopting a hand-to-mouth purchasing strategy, buying only what is necessary to meet immediate needs.

Our Outlook

Given the current market conditions, we expect that the mainstream prices of bismuth ingots will remain range bound between 6 $/lbs to 6.5 $/lbs (FOB Chinese Port) in the coming weeks.