“Toto, I’ve a feeling we’re not in Kansas anymore.” Dorothy, Wizard of Oz, 1939

We at G50 Corp are not prone to embellishment and will always defer to evidence-based debate and conversation.

We also believe that a fully informed and free market is the best way to set prices and allocate capital. The subdued gallium price of the last 2 weeks has broken from its slumber. The long list of positive price support for gallium has finally turned up in the price.

We have never seen a +$50 / kg move before and lends credibility to rumoured levels of U$1,000 / kg we have heard quoted for bigger volumes in South East Asia.

Purchasing managers at large downstream semiconductor compound manufacturers may have to get used to paying higher prices. It reminds us of the early uranium bull markets where utilities were accustomed to paying circa U$12.50 / lb for their uranium needs. When the uranium price finally broke out, contracting demand disappeared as the real long-term buyers had to adjust their expectations of the new market price.

Today’s gallium market is starting to feel the same. Traditional buyers of gallium may well need to adjust their expectations (A LOT) higher to secure the product they need.