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(April 5, 2007) JERSEY CITY, N.J.; CLINTON, N.Y.; ITASCA, Ill. — Major solder companies are adjusting prices on tin-bearing solders, following reports that 2007 tin consumption would greatly outrun available raw tin supply. Mining and production shortfalls in Bolivia and Indonesia drove the market shift, and solder companies will roll out price adjustments as temporary or tiered increases. The surcharges are expected to last for the majority of 2007.
Cookson Electronics Assembly Materials will apply a surcharge to tin-bearing ALPHA solder pastes, effective 30 days from customer notification. The surcharge, organized in a tier system, will be eliminated when tin prices return to the range experienced in mid-2006.
Indium Corporation announced a surcharge, effective immediately, for silver- and tin-bearing solder pastes. Surcharges were determined based on January 2006 levels, and the subsequent increase on raw tin. When prices return to January 2006 levels, the surcharge will be dropped, noted the company.
Kester will also add a surcharge to silver- and tin-bearing solder paste products, effective 30 days after notification. Kester based these increases on the price changes from January 2006 to present costs, and will remove the additional charge when prices return to January 2006 levels.
Amtech also introduced a surcharge on silver- and tin-bearing pastes in light of rising metal costs. While lead-free is one reason, others drive up silver and tin prices, said Leigh Gesick, vice president of operations at Amtech. Investor moves, political instability in mining regions, China's consumption, and new purity specifications all affect the metal futures. Bar solder prices, he noted, vary in accordance with raw materials, and pastes will follow a similar model. "Customers understand that metals' pricing will change, and implementing temporary surcharges rarely causes an issue," he said, "suppliers like to see the prices remain stationary and stable, which is more important to the supply chain than price levels."
The surcharges will prevent day-to-day fluctuations in the cost of solder products, and help maintain secure inventories, the companies report. Metal prices are expected to continue climbing or remain at these highs through 2007.
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