US tariffs on imports of certain minor metals from China will lead to higher prices in the short term, but market participants are looking further ahead, and players on both sides expect Chinese material to continue to find a home in the United States.
Activity in minor metal markets around the world has slowed while participants await a decision from US President Donald Trump's administration as to whether a number of minor metals produced by China will be subject to import tariffs. US buyers and consumers are cautious and reluctant to sign long-term contracts and stocks are on hold while participants await clarity on which, if any, minor metals will be affected by tariffs. "The thing is, the reward [of buying metals that could be subjected to tariffs] does not outweigh the risk," a US trader said. Indium, antimony, bismuth, gallium, germanium and vanadium were each named on a list circulated by the US government, and could face import tariffs of up to 10% or 25%. They could also be excluded from the list and subject to no tariff. Still, minor metals companies are keeping a cool head in the face of a possible escalation...