Furukawa Denshi Expects 92t Metallic Arsenic Sales in F2007

Yasuhei Konagaya, president and representative director of Furukawa Denshi, the world top supplier of high purity metallic arsenic, explained to Japan Metal Bulletin the company’s supply policy in fiscal 2007 starting April. He said the firm expects high purity metallic arsenic sales at 92 tonnes per annum in fiscal 2007 as flat as estimated 91 tonnes in fiscal 2006, when the demand is steady for gallium arsenate compound semiconductors.Mr. Konagaya explained Furukawa Denshi sold more than 6 tonnes metallic arsenic per month through fiscal 2006 and especially near 10 tonnes per month in October-December. The firm met the strong demand in October-December by inventory and output expansion. In and after January 2007, the sales volume returned to above 6 tonnes per month, he said.Furukawa Denshi imports arsenic trioxide, the material for metallic arsenic, all from China. Mr. Konagaya said the firm was recently facing difficulty in stable procurement of arsenic trioxide when Chinese government strengthened regulations on its raw material exports and Chinese domestic arsenic trioxide makers were selected even among several makers in Yunnan Region where Furukawa Denshi had purchased arsenic trioxide.Mr. Konagaya said the main supplier of arsenic trioxide to Furukawa Denshi offered price hike by 30-40% under the severe operating situation and Furukawa Denshi accepted the hike.Furukawa Denshi researches other material suppliers than China. Mr. Konagaya said there were arsenic trioxide makers in Europe and Furukawa Denshi examines the possibility to purchase the material from European makers. He pointed out European makers could supply arsenic trioxide with stable quality but twice high price compared with Chinese makers.