Rumors that the Chinese government may begin stockpiling indium as a part
of its resource strategy are circulating in Asia.

One Chinese industry source told Platts Monday he heard talk that the
Chinese government was starting a 50-100 mt indium stockpile base. He said the
rumors were current at the 2007 China International Indium Forum and Economic
& Trade Exhibition held October 10-12 in Liuzhou City, Guangxi Province. The
conference was jointly organized by the Liuzhou government and several Chinese
nonferrous metals industry associations.

Some Japanese traders said stockpiling was a strong possibility. In June
this year, China launched the Guangxi Indium Metal Exchange Center, the
world's first indium exchange platform, in order to consolidate and protect
the country's indium reserves and regulate prices. A stockpiling measure
following this exchange establishment is always possible, traders said.

"One member of the politburo standing committee of the Communist Party of
China is deeply involved in setting China's strategy based on its rare metal
resources ... indium I believe, is positioned as a resource for solar
batteries, rather than indium tin oxide for flat panels," one trader said.

Another trader said he had heard China has a plan to stockpile up to
1,000 mt of indium metal. A third industry source said governments start
stockpiling without making official announcements. "Don't expect a clear
message. Look for signs," he said.

But a fourth Japanese trader noted that the 2007 China International
Indium Forum and Economic & Trade Exhibition did not have official speakers
from National Development & Reform Commission or Chinese Ministry of Commerce.
He said he would dismiss all talks heard at this event as unfounded.

A source at Beijing Antaike, the state-run nonferrous metal information
provider, replied to a Platts email query, that the question if whether
the Chinese government would start an indium stockpile was "up in the air."