Tellurium Supply Tightens due to High Demand from Solar Cell Makers

Global supply and demand balance is tightening for tellurium. It is said that the demand is increasing from solar cell makers in USA while European dealer is moving to spot corner. The international market price has surged by about 80% in a recent year.

Tellurium is a byproduct of copper smelting, applied to wide applications including catalyst, electronic materials and additive for lead-free free cutting steel. The international market price is presently US$ 220-230 per kilogram, increasing from US$ 120-130 of a year earlier.

US major solar cell maker, First Solar has increased the sales of cadmium-tellurium compound solar sell module since 2009. Some of Chinese solar cell makers seem to start the same compound solar cells currently. Tellurium consumption by solar cell makers is now said to account for 20% in the world total demand.

Meanwhile, UK rare metal trader is recently said to be cornering spot tellurium with an expectation the market price should rise.

Japanese tellurium compound maker commented demand for the compound is strong though material stock is short. Tellurium production is generally decreasing due to low grade of copper ore. Recycling technology hasn’t been established. Thus tellurium supply would keep tight for a while.