A couple things I thought were interesting from the cc regarding raw material (esp gallium) prices:
- YOY raw material revs did NOT decline as most expected
- Raw material sales by VOLUME actually increased (increase in demand)
- Moris said In a typical cycle, an increase in volume is followed ~2 quarters later by an increase in price. If that holds true, since volume picked up in Q4, we should start to see increased gallium prices in q2.
- They know of 2 or 3 gallium producers that shut down last quarter due to soft prices...(reduced supply)
- Moris said that AXTI and their JVs are one of, if not the lowest cost producer of gallium
- Moris implied that they will be doing a better job of publicly valuating their JVs to increase shareholder value
- Metal-pages is NOT the best tool to use for gallium prices, since CURRENT spot pricing does not necessarily match FUTURE bulk pricing