RE: The Goverment Ge stockpile -> DepletionThe head of the Nanjing Germanium Co has another opinion, seems like he is less optimistic about the future then me, The FTTH council and silver industry participants.
BEIJING, Sept 4 (Reuters) - China is facing a glut in production capacity of minor metal germanium, head of the Nanjing Germanium Co, China's top germanium producer said.
China produced about 100 tonnes of germanium in 2008, nearly 70 percent of the world's total output of 140 tonnes, Zhao Likui, the company's general manager, told an industry conference."Places with resources are all expanding production capacity. From the perspective of a regional economy, there's nothing wrong in it. But the industry shouldn't develop blindly," said Zhao.
"The germanium industry may make the same mistake as the polysilicon industry."
Polysilicon is used to make solar panels. Beijing said last month it would take steps to curb overcapacity and redundant investment, ranging from steel to silicon and wind power equipment. [ID:nPEK160728]
Unlike base metals and many minor metals, which have rallied strongly this year, germanium prices have been falling, and are expected to stay weak, Zhao said.
"There's no possibility of prices rising before the end of the year."
Germanium GERM-LON, a semiconductor material, was quoted at $1,050 a kilogramme, down nearly a third since October last year.
The cut in U.S. military spending has affected demand for germanium, among other factors that are weighing on prices, Zhao said. (Reporting by Rujun Shen and Tom Miles; Additional reporting by Coco Li; Editing by Jacqueline Wong)