Gallium Export Strategy Research

Gallium is a specialty metal, a minor metal as well. The total output in the world is not very large, is only some 200 tonnes per annum. As an important intermediate material, it is widely used in electronics industry.Gallium is produced as a minor by-product, mainly of alumina production from bauxite ores, sometimes of the smelting and refining of zinc metal. At the end of the year 2000, with development of telecommunication, world demand on gallium increased. The price rapidly went up under increased demand and market speculations.Shandong Aluminum Corporation used to be the only one producer of gallium in China, 90% of its products are exported. In 2000, when seeing price up, other alumina refineries started to build green production lines. By end of the year 2001, the production capacity of primary gallium in whole China increased to 100 tonnes from 10 tonnes within one year. Some gallium manufacturers outside China expanded their capacity, or considered to establish new lines. World production of primary gallium was almost doubled. In 2001, world economy stagnated. Gallium price suffered a disastrous decline. Decreased demand causes large inventory. The market in China is very small. How to handle Chinese gallium product? It is the right time to study export strategy NOW.This article is written based on market investigation and marketing theory. Through market segmentation and analysis of export environment, some export strategy is chosen, and implementation tactic is put forward. It is expected that the article can play a certain role to exportation, and be helpful to gallium development in China.