INDIUM: Surge in demand

INDIUM
Surge in demand expected from digital broadcast changes
Production of indium tin oxide thin-film coatings continued to be the leading end use of indium and accounted for approximately 84 percent of global indium consumption. ITO thin-film coatings are mostly used for electrically conductive purposes in a variety of flat panel devices – most commonly liquid crystal displays. Other end uses included solders and alloys, 8 percent; compounds, 5 percent; electrical components and semiconductors, 2 percent; and research and other, 1 percent. The estimated value of primary indium metal consumed in 2007, based upon the annual average price, was about $75 million. Global secondary indium production increased significantly during the past several years and now accounts for a greater share of indium production than primary. This trend was expected to continue in the future. In 2007, several major secondary indium producers in Japan and the Republic of Korea announced plans to further increase their recycling capacity.

The indium market, however, remains in deficit because demand, largely ITO demand, continues to outpace supply. In 2007, year-on-year shipments of LCD television panels increased 47 percent, and LCD monitor panels increased 24 percent. Mainstream LCD devices also were trending toward larger panel sizes, which require more indium per unit. In addition, the mandatory conversion of television broadcasts to a digital format in 2009 is expected to drive LCD demands to unprecedented levels. Photovoltaic applications could become another large market opportunity for indium. Thin-film copper indium gallium diselenide solar cells require approximately 50 metric tons of indium to produce 1 gigawatt of solar power. Research is well underway to develop a low-cost manufacturing process for flexible CIGS solar cells that would yield high production throughput. Flexible CIGS solar cells could be used in roofing materials and in various applications in the aerospace, military and recreational industries.

As a result of significantly more high-end applications, demand and prices have been volatile but surging mainly upward. The U.S. producer price for indium began 2007 at $835 per kilogram, where it remained for most of the year. In late September, the price fell to $685 per kilogram. The availability of recycled indium is expected to continue to temper price increases for the near future, but, if predictions of periods of 40 percent annual growth in consumption turn out to be true, price pressures will be significant.


Trade disagreements also may impact pricing. China, the world’s largest indium producer, recently imposed export restrictions on these materials. Canada and Republic of Korea have significant potential, but the cost of opening new mining operations has inhibited actual production in these countries, and increases in indium prices may reach a tipping point for significant new mine development.


ZIRCONIUM

Domestic consumption of zirconium-mineral concentrates decreased slightly in 2007 compared with that of 2006. Ceramics, opacifiers, refractories, and foundry applications are the leading end uses for zircon. Other end uses of zircon include abrasives, chemicals, metal alloys, welding-rod coatings, and sandblasting.

Consumption of zircon for use in television glass decreased significantly, but grew for ceramic, refractory, and chemical uses. Between 2002 and 2005, demand exceeded supply. According to research firm Roskill, “the shortage of zircon in the market would have continued into 2006 had it not been for the emergence of Indonesia as a major new supplier of zircon, resulting in the market entering a period of oversupply in 2006. However, despite increased production from Indonesia, prices continued to rise.”

In 2007, global production of zirconium concentrates increased to 1.24 million tons, a 5 percent increase compared with 2006. Even with these production increases, prices for zircon concentrate increased to record-high levels. Global consumption of zircon was forecast to increase an average of 3 percent per year through 2015. Consumption growth in China is expected to be somewhat higher than the global average. In 2007, new mine production began in Australia, Indonesia, Mozambique and Gambia, although cost-cutting measures ended mining in Florida and Georgia.

BORON

Exported U.S. borate materials compete with borax, boric acid, colemanite, and ulexite, primarily from Turkey, and Turkish officials in April 2008 asserted that their country dominates the world boron market.


MATERIALS REVIEW
http://www.ceramics.org/ASSETS/574195312DA149928805FFEA1242FECF/MaterialsReview_08_08.pdf

(Prepared with assistance from Amy C. Tolcin, USGS)