Mitsui Mining & Smelting Seeks Raw Materials Cost Based ITO Pricing

Mitsui Mining & Smelting tries to improve the profitability for indium tin oxide target material business. The firm seeks new pricing mechanism to reflect raw materials cost timely. The firm negotiates with the users of liquid crystal panel makers. The firm tries to establish Chinese production site through the effort for higher profitability.

The firm won part of the price hike through the negotiation with the buyers to reflect raw materials cost in autumn 2009. However, the firm could not cover the higher raw materials cost. The firm tries to realize stable profitability through the new price mechanism even with fluctuation of the raw materials cost.

ITO target price consists half for raw materials cost and half for processing cost. However, indium oxide represents 90% of the raw materials cost while tin oxide represents 10% of the cost. The cost structure depends on indium price.

International price of indium hit US$ 300 per kilogram in July 2009. The price doubles from the bottom when Chinese sales of liquid crystal panel television increases.