European bismuth prices have surged to their highest levels since 2008, driven by concerns over impending export restrictions from China. The move, viewed as a retaliatory measure amidst escalating global trade tensions, has sparked fears of a significant supply crunch for the metal, which is crucial in pharmaceuticals, cosmetics, and nuclear research.
Earlier this month, China announced its intention to impose export controls on five key metals: tungsten, tellurium, molybdenum, bismuth, and indium. This decision comes in response to recently implemented tariffs by the United States.
The immediate impact on the European spot market has been dramatic. Bismuth prices, previously stable at around $6 per pound, have soared to between $12 and $18 this week. Market traders anticipate further price increases in the coming weeks.
China’s dominance in the bismuth market is substantial. According to the United States Geological Survey (USGS), the nation accounted for over 80% of global bismuth production last year, producing approximately 13,000 tonnes. While other countries, including Japan, South Korea, and Laos, contribute to the remaining supply, traders highlight the limited availability of bismuth from these sources compared to China.
“We have been inundated with enquiries from both our EU and US clients,” stated a European-based trader, emphasising the growing concern. They further noted that US consumers would be particularly vulnerable should the trade dispute between China and the US escalate.
With global trade tensions on the rise, it is expected that China may further utilise its control over critical minerals as a strategic tool. The recent price surge in Europe signals the potential for significant market volatility and supply chain disruptions.
