Higher Metal Cost Lifts Japan Electronic Material Output in 2007

Japanese annual output of electronic materials increased by 15% to 524.5 billion yen in 2007 from 2006, according to Japan Electronics & Technology Industries Association. The value was pushed up by higher material prices such for nickel, copper and rare metals. Demand maintained steady for electronic materials worldwide through 2007 as well.Annual output of metal materials was 69.4 billion yen in 2007, up by 42% year-on-year. Output value of electric tube and leadframe materials expanded by 38% versus 2006 for those which nickel is mainly used. Nickel spot price soared by 60% in May from the beginning of 2007.Output value of permanent magnets increased by 9% to 110 billion yen in 2007 from 2006, among which rare earth magnet increased by 13%. Demand for neodymium-iron-boron magnet had grown from automobiles and portable music players. Higher neodymium cost also pushed up the output value.Annual output of semiconductive ceramics was 48 billion yen in 2007, up by 2% year-on-year. A source of Japanese ceramics parts maker said the output value decreased despite more shipment volume when unit price severely downed.