Cookson Electronics Assembly Materials (Jersey City, NJ) will implement a tin surcharge covering the dramatic increase in the cost of tin on all invoices for ALPHA solder paste when the London Metal Exchange price exceeds $9,500/metric ton. The surcharge calculation is based on official LME pricing (www.lme.co.uk) which confirmed that tin prices more than doubled in the last six months over the previous two-year average. 

In May, the price of tin broached the $10,000/per metric ton psychological level. Adding to the upward price pressure on tin, some analysts and research groups suggest that the production of tin for 2004 will be approximately 6% less than the demand. Prices for other metals over the same period have also risen sharply with copper up 91%, lead up 128%, nickel up 146% and silver up 95%. The surcharge does not address the cost increases for these metals.

"This year-long run up in the cost of tin has hit us particularly hard," said David Zerfoss, president of Cookson EAM. "An example of its impact is that 63% of 90% of the solder paste we ship worldwide is tin...Given this severe cost increase situation and the importance of tin in the assembly process, we are forced to ask our customers to share the burden with us. As soon as tin prices drop below $9,500/metric ton, I will rescind the surcharge."

www.alphametals.com

Copyright 2004, UP Media Group. All rights reserved.

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