Japanese price mechanism of indium tin oxide shifts to raw materials based adjustment system. Nippon Mining & Metals, Mitsui Mining & Smelting and other sputtering target materials makers seek new pricing system at talks with the users to reflect indium price change. The quarterly price reflected higher raw materials cost for April-June and July-September when the users accept the new mechanism.
ITO target makers settle the quarterly price through negotiation with the users of liquid crystal panel makers. However, the price doesn’t reflect indium cost change always. Indium international price doubled by April from July 2009 but the ITO price failed to reflect the all of the cost change pressuring ITO target makers’ profitability. IT target makers try to improve the profitability through the new pricing system. They won 20% price hike for April-June to reflect higher indium cost and they are getting 10% hike for July-September to cover higher cost for raw materials. The ITO target makers try to establish indium cost based pricing system in and after October. Nippon Mining & Metals has world 45% market share in around 1,000 tonnes of annual ITO target market while Mitsui Mining & Smelting has 30% share in the world.Japan Steel Scrap Composite Prices (Sangyo Press)
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