Amazing!!! The metal has nearly doubled in price since last year's low. The smallest of the top 10 rose 39%

In the sudden outbreak of the new champions league of market panic, the collective financial markets into a frozen state, 2020 were routed in commodity prices, but with China's fast effective control of the outbreak, China's industrial activity fast recovery, supporting policies driven by consumer get strong recovery, the commodity price collective fast continue to rise. According to SMM metal spot price data, since the low point in 2020, the spot price of gallium has nearly doubled, with an increase of 93%, the price of 1# silver has soared by 80%, and the price of battery grade lithium carbonate has soared by 70%, with the smallest increase of 39% among the top ten metal categories! Why do these metal prices skyrocket, in addition to the influence of macro factors behind, what fundamental factors support? After the big rally, is there room for further upside? SMM made a review and summary of this and the trend of the first quarter outlook.

In recent years, the price of gallium has been stable at about 1000-1200 yuan/kg, and the supply and demand basically remain slightly higher than the demand. With the continuous inventory, by the beginning of 2020, the price of gallium is basically close to the production cost of the industry, which also leads to small and medium-sized private manufacturers such as Jiahua and Zhaofeng forced to stop production. With the spread of the epidemic in the world, the production capacity of the magnetic material production and processing industry shrank rapidly in Europe, America and Southeast Asia, and the world orders shifted to China, which made the gallium industry change from the original storage stage to the destocking stage. The growth of demand and the reduction of supply promoted the rise of gallium price. Market liquidity has also accelerated the rise in gallium prices. Gallium prices are expected to remain stable for some time to come, but with plants such as Gaia and Mega starting up, the future price rise is likely to be contained.