Indium Price Hits 9-Year High

The price of indium has risen sharply since the beginning of May. Read on to learn more about the market dynamics, possible backgrounds, and how indium is positioned compared to other technology metals.

The price of the essential technology metal indium reached a nine-year peak at the beginning of May and is now at its highest level since July 2015. Tight availability on the spot market and modest annual production of only around 650 tons have led to this remarkable price movement. China accounts for around 65 percent of indium production and is mainly responsible for the global supply. As the indium market is relatively small, even minor changes in production or demand can cause significant price fluctuations.

No New Fields of Application, but Rising Prices

The industrial demand for indium, particularly for touchscreens, flat panel displays, and thin-film photovoltaics, has not seen an unusual increase. Unlike other technology metals such as hafnium, whose demand has risen due to the emerging aircraft manufacturing and nuclear power industry needs in early 2023, the demand for indium in its usual areas of application areas remains stable. This suggests other factors may be behind the current shortage and price hikes. Sellers may adopt a wait-and-see approach to monitor market developments, meaning less indium is available.

Insight Into the Market Mechanisms

There is no primary production of indium — the metal is a by-product of zinc mining — and recycling only makes a limited contribution to covering demand. Indium’s price spike is reminiscent of what happened with the technology metals gallium and germanium in the summer of 2023, when Chinese export restrictions led to temporary supply bottlenecks and price increases for those elements. Indium is not currently affected by such export regulations. Still, the Chinese export restrictions show how sensitive the market is to strategic decisions and minor shifts in production and how a shortage of physical availability of a metal — even if only for a short time — can cause turbulence.

Our weekly updated price charts show the price trends of indium and the other commodities we offer as physical assets at any time.