The peak is estimated, sapphire crystal rod will not go down in 2011

Taiwan sapphire crystal rod factory is the peak current increase in LED Corporation said, sapphire ingot supply rate is still less than the growth in demand, many manufacturers yield in after expansion remains to be seen, so in 2011 the sapphire crystal rod or offer may be better than 2010, but still not go down.

But the industry believes that sapphire crystal rod is an important raw material upstream of LED, the current production capacity is still mainly concentrated in the United States Rubicon, Russia and South Korea STC Monocrystal and other manufacturers such as the peak of Taiwan. At present, the global total production capacity of about 1 million 500 thousand mm per month, the market share of these top 4 manufacturers is up to about 70%.

Benefit from the large size LED backlight and lighting led to increased demand, sapphire crystal rods from 2010 Q1 began to appear in short supply, and prices sharply lift. Sapphire crystal rod material costs accounted for about 30% of its manufacturing costs, and the material price change in 2010 is not large, so it is conducive to sapphire crystal rod factory pulled a substantial margin.

Increase in downstream demand, the sapphire ingot factory began to actively expand production, due to the long grain machine from construction to complete production for about 6 months, manufacturers production capacity of about Q1 in 2011 opened up, so the price will be steady to Q1 in 2011, Q2 began a downward pressure.