Yusheng germanium production resumes amid tight feedstocks and soft demand

Yusheng germanium

Yusheng germanium production has resumed in China after a month-long halt caused by mine security checks. Yusheng germanium production is ramping back up at a 50 t/yr capacity, but constrained feedstocks and low downstream demand still dominate market sentiment. As a result, Yusheng germanium production is returning to the market in a fragile balance between cost pressures and weak infrared sector consumption.

Feedstock constraints and price hike shape Yusheng germanium production

Guangxi Yusheng halted operations in early September after a security check at its Guizhou zinc and lead mine. The inspection disrupted feedstock supply and forced a pause in germanium output at the 50 t/yr facility. Now, the company has restarted production but faces low inventory levels.

Yusheng has raised its germanium sales price by 5pc on resumption. The producer cites tight stocks and firm feedstock costs as the main drivers. However, many buyers question whether the market can absorb higher prices. Demand from the infrared applications sector remains notably weak.

Some participants expect prices to hold rather than rise further. Firm concentrate and intermediate prices could support the floor, even as end-use demand struggles. In this environment, Yusheng germanium production acts more as a stabilising presence than a bullish catalyst.

Export controls weigh on germanium demand and trade flows

China has tightened export controls on downstream germanium infrared products since June. These products are treated as dual-use items with both civilian and military applications. The controls restrict the flow of value-added germanium components into global markets.

Last year, strong defence and security demand drove a surge in germanium consumption. Escalating geopolitical tensions boosted orders for infrared optics and other military-linked uses. Now, stricter controls are curbing that channel, adding another headwind to germanium demand.

As a result, domestic producers must navigate a market where feedstock remains firm, but downstream orders are cautious and policy constrained. For Yusheng, the challenge is to balance stable operations with a realistic view of off-take in sensitive end-use segments.

The Metalnomist Commentary

Yusheng’s restart underscores how policy, security checks and strategic controls now shape germanium more than classic supply–demand cycles. Tight feedstocks and export restrictions create a floor under prices, but weak infrared demand caps upside. For investors and suppliers, the germanium market is increasingly a geopolitical barometer, not just a specialty metals niche.