The US Defense Logistics Agency has cancelled a request to buy more than 400 tonnes of indium for its National Defense Stockpile, Fastmarkets reported. Traders say that is roughly a full year's supply outside China, and US indium prices have climbed since the request.
At a glance
- The request, valued at $100 million to $250 million, was cancelled on September 30 without an award.
- US indium prices rose 11.6% to $915-960 a kilogram between July and early October.
- The US relies entirely on imports for indium, mainly from Canada, China and Japan.
Background
Indium is a soft, rare metal used mainly in touchscreens and flat-panel displays, as well as in semiconductors and solar cells. China is a major supplier, and the market outside China is small. The Defense Logistics Agency (DLA) buys strategic materials for the US National Defense Stockpile, a reserve held for emergencies.
What happened
The DLA sought more than 400 tonnes of 99.99%-pure indium ingots for the National Defense Stockpile over three years, in a request issued on July 13, Fastmarkets reported. The agency valued the deal at $100 million to $250 million. Offers were due on July 20, but the request was cancelled on September 30 without an award.
Indium Corporation of America and AIM Products were listed as possible suppliers, and no companies outside that list could supply the deal, according to Fastmarkets.
Why it failed
The volume was simply too large. The market for indium outside China is around 400 tonnes a year, a trader told Fastmarkets, meaning the request would have absorbed roughly a year's supply. "It's common sense, there's no way [suppliers] be able to fulfill" the request, the trader said.
"The market outside of China is very finely balanced," a second source said. "Supply and demand are just about evenly matched."
What it means
Tight supply is already pushing prices up. Fastmarkets' US indium price rose 11.6% to $915-960 a kilogram on October 2, from $820-860 on July 24. Worries that China could add indium metal to its export controls have added to the rise; indium phosphide is already on the list. One trader said there is "no reason" the market cannot reach $1,500 a kilogram. Chinese indium also faces a 25% US tariff.
Our read
Outlook: bullish. A balanced ex-China market, US stockpile demand and the risk of Chinese export controls all point to tight supply and firm prices.
What to watch
- Whether the DLA reissues a smaller indium request.
- Any move by China to add indium metal to its export control list.
For information only, not investment advice.
Indium price in India
metalscost.com India reference price as of 2026-10-24.
Detailed analysis
Timeline
- 2026-07-13: DLA issues a request for over 400 tonnes of indium.
- 2026-07-20: Offers due.
- 2026-09-30: Request cancelled without award.
Supply Drivers
The ex-China indium market is only about 400 tonnes a year and roughly balanced, leaving no room for large stockpile purchases.
Trade Tariffs
Chinese indium faces a 25% US tariff, steering US buyers to scarce non-Chinese supply.
Geopolitical Risks
Fears that China could add indium metal to export controls are lifting prices.
What could lift prices
- US stockpile demand remains unmet and could return.
- Possible Chinese export controls on indium metal would tighten supply further.
What could weigh on prices
- With the request cancelled, that extra demand is off the market for now.
- Higher prices could encourage more recycling and supply.
Country impact
| Country | Impact | Reason |
|---|---|---|
| United States | Medium | It depends fully on imports and could not buy indium for its defence stockpile. |
| China | Medium | Its dominance of supply and possible export controls shape the market. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Electronics | Negative | Display and chip makers face rising indium costs. |
Who gains, who loses
- Indium producers outside China: Tight supply and strategic demand are lifting prices.
- US defence stockpile planners: They could not secure the indium they sought.
Other ways this could play out
- If China adds indium metal to export controls, US prices could rise sharply.
- If the DLA returns with a smaller request, it could still squeeze the ex-China market.
Price risks
- Easing trade tensions with China would cool the price rise.
- Weaker demand from display makers would loosen the market.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
United States
China