China Major to Raise Tantalum Powder, Wire by 35-50% in July

Chinese tantalum major, Ningxia Orient Tantalum Industry will increase the selling price of tantalum material for capacitor. The firm notified European tantalum capacitor makers to increase the price by 35-50% from March shipment effective in July shipment. The buyers apparently accepted the higher price. The tantalum major also increases the selling price to Japanese buyers as European buyers.

The tantalum major signed annual supply contact with European buyer to ship tantalum powder and wire for capacitor while the major shipped the products through monthly contract. The firm increases the selling price by 15% for April-June.

The European buyer tries to secure the material even at higher cost under the tight supply. The buyer also accepted higher price in April-June securing requirement through annual contract. The buyer apparently accepted 35% and 45-50% higher price each for powder and wire products in and after July compared with March shipment price. Ningxia Orient Tantalum Industry notified Japanese buyers to increase the powder and wire selling price as European buyers.

Tantalum capacitor is used for cell phone and small electronics devices. The demand decreased after financial crisis but the tantalum demand recovers as worldwide economy recovers. The tantalum supply gets tighter for powder and wire.

The higher price is partly due to higher price of tantalum concentrate. The price is around US$ 65 per pound of tantalum pentoxide, which is around 70% higher than end of 2009 level, according to source. The traders seek higher price under tight supply when the world largest tantalum mine in Australia has stopped the operation since December 2008.

Ningxia Orient Tantalum Industry is world no.3 for tantalum powder and top position for wire for anode lead of capacitor. The buyers shifted the wire order to the world major after German major closed the US plant in June 2008.