4. Consumption and prices

Consumption is currently linked, above all, to strong demand in the cell phone and white-light LED (light-emitting diode) electronics sectors. The expansion of the cell phone sector is very strong in developing countries, but much less so in developed countries, where mobile telephony is only replacing fixed-line telephony.

With electronics requirements growing at a rate of 5% a year, gallium consumption is likely to grow at roughly the same rate. In the LED, blue laser and ultraviolet laser sectors alone, GaN applications grew by between 10% and 13% a year between 2004 and 2006.

Prices for gallium and its compounds are closely linked to producers. Consumers record widely varying market prices. There is a small spot market controlled by traders.

In 2001,...