Taiyo Koko to Hike Cerium Based Polishing Material

Japanese major molybdenum and vanadium maker, Taiyo Koko noticed price hike of cerium based polishing material to the users including liquid crystal makers. The firm didn’t disclose how wide the hike but the firm tries to cover higher raw material cost through the hike when international cerium price surges.

Taiyo Koko is one of the top 3 makers for cerium based polishing material. The top 3 makers control 90% of domestic market share while top 2 of Mitsui Mining & Smelting and Showa Denko have around 40% share each.

Showa Denko announced on September 13 more than 3,500 yen per kilogram of price hike for dry powder products. Mitsui Mining & Smelting didn’t comment on the price hike but a industry source said the firm already started the price hike negotiation with the users.

Cerium price is US$ 39.50 per kg for oxide product but the actual price is around US$ 50 with premium for export license issued by China. The price increased to 6 or 7 times in 3 months when Chinese government reduced the export quota by 40% for 2010 from 2009 level. Chinese exporters try to increase transaction of profitable neodymium and other magnet materials while they reduce cerium export.

Under the surging price and limited supply of cerium, the supply of cerium based polishing material could be short. Mitsui Mining & Smelting’s president Sadao Senda showed concern for potential shortage for the products due to the raw material situation.