<article><p class="lead">China's shipments of fifth generation (5G) mobile phones in January accounted for 68pc of the country's total phone shipments, up from a 52.9pc share in 2020, bolstered by a rapid growth in consumer demand for 5G telecommunication networks. </p><p>Domestic 5G phone shipments rose to 27.3mn in January, up by 50pc from December and by 31.2pc from a year earlier, data from the China academy of information and communications technology show. </p><p>China has accelerated infrastructure construction to support the development of the 5G sector in the past two years. The country aims to build <a href="https://metals.argusmedia.com/newsandanalysis/article/2173397">600,000 5G base stations</a> in 2021, according to the country's ministry of industry and information technology.</p><p>The adoption of 5G is expected to boost demand for electronic and battery metals. The new generation of phones require high-efficiency power amplifiers that run on gallium arsenide or gallium nitride. The need for increased power to run 5G applications is prompting firms to manufacture larger lithium-cobalt batteries.</p><p>Argus yesterday assessed prices for 73pc grade cobalt tetroxide, a raw material to make mobile phone cells, at 270-280 yuan/kg ($42-43.50/kg) ex-works, up by Yn10/kg from 4 February with a rise in spot demand from the consumer electronics battery sector. Producers reduced their operating rates slightly before this week's lunar new holiday, being reluctant to sell this week with expectations of higher demand after the holiday.</p><p>The range for 99.99pc grade gallium metal was last assessed unchanged at Yn1,950-2,050/kg ex-works yesterday with a slowdown in activity before the holiday. Export prices were assessed flat at $305-315/kg fob today, with key producers mostly committed to long-term contracts.</p></article>
