China’s Export Restrictions Drive Bismuth Prices to Unprecedented Levels
European bismuth prices have skyrocketed to record highs as China’s recent export controls tighten global supplies of the critical mineral. The price of bismuth on the European spot market has surged to $40 per pound, marking an all-time high, up from just $6 per pound in late January—a staggering six-fold increase.
The United States is facing even more extreme price spikes, with bismuth prices reaching $55 per pound, compared to $6.50–$7 before China’s export restrictions. This sharp rise is attributed not only to supply constraints but also to U.S. tariffs on Chinese imports, initially imposed by the Trump administration.
China’s Export Curbs Disrupt Global Supply Chain
China, which dominates global bismuth production, announced in February that it would impose export restrictions on five key metals—bismuth, tungsten, tellurium, molybdenum, and indium—as a retaliatory measure against U.S. tariffs.
According to CRU Group, a leading commodity intelligence firm, the market is now struggling to find alternative supply sources.
“At the moment, there are no supply sources to fully replace Chinese material,” CRU analysts told Reuters.
Industry experts warn that unless Chinese exports resume, new bismuth production capacity outside China will be necessary to stabilize the market.
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China’s Dominance in Bismuth Production
China holds an overwhelming share of the global bismuth market, accounting for more than 80% of total production, or 13,000 metric tons in 2023, according to the U.S. Geological Survey (USGS). Other producers—such as Japan, South Korea, and Laos—supply only a fraction of the world’s demand, leaving a significant gap in the market.
Supply Shortages Create Uncertainty in the Market
With bismuth prices at record highs, market players face significant risks in stockpiling the metal. A European trader noted that the uncertainty surrounding future price movements has discouraged companies from holding large inventories.
“This situation is causing a very low unsold inventory level internationally, keeping the price for prompt material at a very high level,” the trader explained.
Shipping delays further complicate matters, as bismuth deliveries can take up to two months. This time lag increases financial risks for traders and manufacturers who are unsure where prices will be when their orders arrive.
China’s Bismuth Prices Double Since January
The Chinese market has also felt the impact of the export curbs. On the Wuxi Stainless Steel Exchange, the most actively traded bismuth contract hit 163,800 yuan ($22,677) per metric ton on Tuesday, marking a 105% increase since the beginning of the year.
Industries Affected by Rising Bismuth Prices
Bismuth is a crucial mineral used in various industries, including:
- Pharmaceuticals – Used in medications such as bismuth subsalicylate (Pepto-Bismol).
- Cosmetics – A key ingredient in pigments and skin-care products.
- Atomic Research – Utilized in nuclear reactors and shielding materials.
As prices continue to rise, manufacturers reliant on bismuth are facing higher production costs, which could lead to price increases for end consumers.
Outlook: Will Prices Stabilize?
Market analysts believe that policy-driven supply constraints could ease quickly if China relaxes its export curbs. However, if China maintains its restrictions, new non-Chinese supply sources must emerge to prevent prolonged volatility.
Until then, European and U.S. bismuth prices are likely to remain at elevated levels, creating a challenging environment for industries that rely on this critical mineral.
