Japan Tantalum Demand Continues to Increase in 2006

Japanese domestic tantalum demand is estimated to increase by 4.9% to 365 tonnes including powder and compound in 2006 from 2005, according to Japan Society of Newer Metals. Tantalum demand grows along the increase of capacitor usage volume, when the sales maintains favorable of digital appliances, cellular phone and personal computer and more capacitors are used into these goods. Tantalum demand is also firm for cemented carbide tools and optical glasses. Japanese domestic tantalum demand could exceed the result in 2004, the record after the collapse of information and technology bubble.The tantalum division of the Society, formed by Japanese 5 tantalum makers, estimated Japanese domestic tantalum powder demand would increase by 5.4% to 235 tonnes in 2006 from 2005. Tantalum powder is used for tantalum capacitors and the demand would increase for 2 consecutive years thanks to the growth of capacitor market.The tantalum powder demand was 269 tonnes at the peak of IT economy boom in 2000 and declined to 116 tonnes in 2001 and 181 tonnes in 2002 under the inventory adjustment after the collapse of IT bubble. The demand turned to the sharp recovery in and after 2003 for PC, cell phone and flat television. The tantalum powder demand could hit the record after the IT bubble collapse for 2 straight years with the expansion of capacitor market for these appliances.The tantalum compound demand, such as tantalum carbide for cutting tools, is estimated to increase by 4% to 130 tonnes in 2006 from 2005. Consequently the total tantalum demand would increase to 365 tonnes in 2006 from 354 tonnes in 2005 and hit the record after the IT bubble collapse.