JX Nippon Mining & Metals Recovers ITO Target Production

Production of ITO (indium-tin-oxide) sputtering target is improving at JX Nippon Mining & Metals. Inventory adjustment of liquid crystal panels continued since September-October. Presently the firm’s Isohara plant in Ibaraki, Japan, manufacturing ITO sputtering target, is almost in full operation after completion of the inventory adjustment. In China, sales volume of LCD (liquid crystal display) television is strongly increasing. Thus ITO production is expected to maintain busy in 2011.

ITO is used as transparent electrode material for liquid crystal panels. Isohara plant’s productive capacity is 50 tonnes per month. JX Nippon Mining & Metals is the global top supplier of ITO sputtering target with 45% market shares. Liquid crystal panel production had increased in South Korea and Taiwan to follow LCD TV demand growth in China. ITO target production was full in the first half of 2010 along the movement.

However, in the second half year, panel market entered adjustment phase mainly in Taiwan. Taiwanese panel production obtains outsourcing from South Korean makers such as Samsung Electronics. South Korean makers decreased outsourcing orders to Taiwan in the adjustment phase. As a result, Taiwanese panel market seems to have temporarily declined to 60% level.

Along with the market trend change, JX Nippon Mining & Metals’ ITO target production decreased by about 20% in and after September-October. Currently panel inventory adjustment has almost finished. Taiwanese panel market seems to have recovered to 80-90% level. Thus ITO target production returned to almost full.

International market price of indium ingot hit bottom to reflect ITO output recovery. The spot price is currently above US$ 550 per kilogram, which rebounded from the recent bottom of US$ 550 per kilogram in late November. The spot price of high purity indium used for ITO is as high as US$ 600.