China Hunan shuts down almost all indium production

Related Topics

Fri Aug 28, 2009 4:32am EDT

* Hunan produces about quarter of China's indium

* China is world's largest producer of indium

SHANGHAI, Aug 28 (Reuters) - Hunan, one of China's top indium producers, has shut almost all crude indium production this month after environmental checks, trading sources said on Friday.

The central province of Hunan earlier this month announced a campaign to check the hidden environmental protection problems in a range of industries, including metals smelters, a statement from the province's Environmental Protection Administration showed (www.hbj.hunan.gov.cn). "The government is being very strict this time. It has even taken away raw materials stocks from smelters," said a Hunan-based trader. "The crackdown has squeezed the supply of crude indium. It's very difficult to find prompt supply these days."

China is the world's largest producer of indium, used in making liquid crystal display screens, and Hunan contributes nearly 25 percent of China's output, an industry source estimated.

Hunan's crackdown followed violent protests in the city of Liuyang against cadmium pollution from a chemical factory, which was later ordered by the government to close.

"I wouldn't exclude the possibility of other provinces adopting similar policies, especially after the lead pollution incidents," said a Guangxi-based industry source.

At least three lead smelters in Henan province and two in Shaanxi province, with a combined capacity of about 6 percent of China's annual production, were ordered to temporarily halt production after protests against pollution at a lead and zinc smelter in Shannxi Province. [ID:nPEK70724]

Indium prices in Shanghai have risen for three consecutive weeks to about 3,025 yuan per kilogram, up nearly a third this month, according to the Shanghai Non Ferrous Trade Association (www.smm.cn).

On top of short supply, speculative buying also has pushed up prices, traders said. (Reporting by Rujun Shen and Tom Miles; Editing by Chris Lewis)






China
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.