Bismuth Metal Market: China's Export Controls Reshape Global Supply Chain

Strategic metal faces unprecedented price surge amid geopolitical tensions

July 7, 2025

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KEY HIGHLIGHT: Bismuth prices surged 700% in three months following China's export control implementation, highlighting the critical importance of this "green metal" in global supply chains.

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Market Overview

The global bismuth metal market, valued at approximately $295 million in 2025, is experiencing unprecedented volatility following China's implementation of export controls on rare metals including bismuth. The market, which has been projected to grow at a compound annual growth rate (CAGR) of 4.8% through 2030, now faces significant restructuring as global supply chains adapt to new regulatory landscapes.

Bismuth, a silvery-white to pinkish metallic element with unique properties including low toxicity and diamagnetic characteristics, has emerged as a critical material for numerous high-tech applications. Unlike other heavy metals, bismuth's relatively low toxicity and non-carcinogenic nature have earned it the designation as a "green metal," making it increasingly valuable in medical and environmental applications.

Key Market Statistics

• Global Annual Production: 16,000 tons
• China's Market Share: 80%
• Projected CAGR (2025-2030): 4.8%
• Price Increase (3 months): 700%

China's Market Dominance

China's overwhelming dominance in the bismuth market cannot be overstated. The country produces over 80% of the world's bismuth supply, with approximately 50% of this production destined for export markets. This positioning makes China both the largest producer and consumer of bismuth globally, accounting for roughly 40% of worldwide consumption.

Major Chinese Producers:

Zhuzhou Keneng New Material

• Capacity: 4,000 tons annually

Henan Jinli Gold And Lead Group

• Capacity: 4,000 tons annually

Guixi Da San Yuan Industry Group

• Capacity: 4,000 tons annually

China Tungsten And Hightech Materials

• High-purity Bismuth (6N): 720 tons annually

Outside China, Laos and South Korea represent the next significant producers, each contributing approximately 7% of global production. Bismuth is typically produced as a byproduct during lead ore processing, with additional production from tungsten, zinc, and other metal ore processing operations.

Export Control Impact

The implementation of export controls by China's Ministry of Commerce and General Administration of Customs on February 4, 2025, has fundamentally altered the global bismuth market landscape. The controls, which require government permits for the export of bismuth and other rare metals including tungsten, tellurium, molybdenum, and indium, have created immediate supply concerns in international markets.

Market Disruption: The seven-fold price increase within three months of the export control announcement demonstrates the market's heavy dependence on Chinese supply and the lack of immediate alternatives for consuming nations.

Applications and Strategic Importance

Bismuth's unique properties make it indispensable across multiple high-value sectors. Its applications span from traditional uses in low-melting-point alloys to cutting-edge technologies in semiconductors and medical devices.

Key Applications:

• Low-melting Point Alloys
• Semiconductor Materials
• Medical Devices
• X-ray Detectors
• Superconductors
• Infrared Detectors
• Laser Components
• MRI Equipment

In the medical sector, bismuth's low toxicity profile makes it valuable for gastric medications and wound treatment applications. The electronics industry utilizes high-purity bismuth for manufacturing semiconductors, optoelectronic devices, and superconducting materials. In optical applications, bismuth is essential for infrared detectors, lasers, and optical lenses.

Market Challenges and Substitution Efforts

While substitution efforts are underway, bismuth's unique properties make replacement difficult in many applications. In pharmaceutical applications, aluminum oxide, antibiotics, calcium carbonate, and magnesium oxide can serve as alternatives to bismuth compounds. For low-temperature soldering applications, indium, cadmium, lead, and tin can partially substitute for bismuth.

However, in high-precision sectors such as nuclear industry applications, superconducting materials, and integrated circuits, bismuth's specific properties including high density and superconducting characteristics make it nearly irreplaceable with current technology.

Market Opportunities and Future Outlook

Strategic Opportunities:

• Development of alternative supply sources outside China
• Investment in bismuth recycling technologies
• Research into bismuth substitutes for non-critical applications
• Strategic stockpiling by consuming nations
• Vertical integration by major bismuth consumers

The current market disruption presents both challenges and opportunities. Countries and companies are now prioritizing the development of domestic bismuth production capabilities and strategic reserves. This shift is driving investment in exploration and development of bismuth-bearing deposits in regions previously considered economically unviable.

The long-term outlook suggests that while China will maintain its dominant position in the near term, the market will likely evolve toward greater geographic diversification of supply sources. This transition period, however, is expected to be characterized by continued price volatility and supply chain adjustments.

Conclusion

The bismuth metal market stands at a critical juncture, with China's export controls serving as a catalyst for fundamental changes in global supply chain strategies. While the immediate impact has been dramatic price increases and supply concerns, the long-term result may be a more diversified and resilient global bismuth market.

As industries continue to recognize bismuth's strategic importance, particularly in emerging technologies and green applications, the market is likely to see sustained growth despite current supply challenges. The key to navigating this transition will be strategic planning, investment in alternative supply sources, and continued innovation in both production and substitution technologies.

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This analysis is based on current market conditions and regulatory developments as of July 2025. Market conditions remain highly dynamic and subject to change.