Higher Tin Cost Suffers Rolled Copper Makers

Higher tin ingot price suffers profitability of Japanese copper sheet and strip makers. The makers should absorb the higher cost when the selling price doesn’t reflect the higher cost. Japanese major 6 makers’ cost increases by more than 800 million yen compared with cost in 2003. They could be suffered additional cost up depending on the market. The makes purchase tin ingot as material of reflow tin plating. Tin ingot price started to increase in 2003 and reached record US$ 20,800 per tonne at settlement of London Metal Exchange last week. The price is more than 4 times of price in 2003. Japanese tin market price also increased from 715 yen per kilogram in February 2003 to 1,995 yen in February 2008 for product with more than 99.9% purity. Reflow tin plating products is to add 1.2 micrometers thick plating on copper sheet and strip with 0.3 millimeters thick. The tin weight represents 0.3% of the total weight of product. Japanese major 6 rolled copper makers make annual 85,000 tonnes of reflow tin plating products. The cost of around 700 tonnes of tin increased to 1.37 billion yen at current market price, which is 870 million yen higher than cost in 2003. The makers could increase the selling price to reflect the higher cost.