Friday, May 30, 2008

Iridium Enquiries Slow As Price Soars

Supplier sources in Japan, South Korea and China acknowledge that buyer inquiries about summer shipments of indium has slowed dramatically now that May market prices averaged $665/kilogram in North America. That compares with a cyclical low of $430 in March and the highest since $835 in June 2007, which also triggered a slowdown in purchasing.

Prices have soared lately after power shortages forced several Chinese producers to suspend spot exports in April. Platts Metals Week, a subscription newsletter, says concerns spread in April and May that the world soon could run short of indium and prices would hit $1,000/kg. Indium is produced mainly from residues generated during zinc ore processing but is also found in iron, lead, and copper ores.

The U.S. only uses about 100 metric tons/year but global demand is strong for the minor metal since it is processed into indium-tin-oxide thin films, a conductive coating for both liquid crystal and plasma displays. Other end uses include solders and compounds used to make electrical components and semiconductors. The U.S. Geological Survey report on indium says photovoltaic applications could become another large market opportunity for indium. Copper-indium-gallium-diselenide thin films for solar cells require approximately 50 metric tons of the indium metal to produce a gigawatt of solar power.

Source: Purchasing.com

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