Reuters reported that China is facing a glut in production capacity of minor metal germanium.

Mr Zhao Likui the company's general manager said China produced about 100 tonnes of germanium in 2008 nearly 70% of the world's total output of 140 tonnes. He said that 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."

Mr Zhao Likui said "The germanium industry may make the same mistake as the polysilicon industry. He said that unlike base metals and many minor metals which have rallied strongly this year, germanium prices have been falling and are expected to stay weak.”

He added that "There is no possibility of prices rising before the end of the year."

Germanium GERM-LON, a semiconductor material was quoted at USD 1,050 a kilogram down nearly a third since October last year.

(Sourced from Reuters)