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SDK to Raise Price of Shorox™ Glass Polishing Material

Showa Denko K.K.
September 13, 2010

Showa Denko K.K. (SDK) has decided to increase the selling price of Shorox™ cerium-oxide-based abrasives used mainly in surface polishing of LCD glass and other types of glass substrates.

Specifically, the selling price will be increased by ¥3,500 per kilogram for Shorox™ product in dry fine particles, ¥700 per kilogram in 20% slurries, and ¥875 per kilogram in 25% slurries, respectively, as from November shipments. SDK has started discussions with customers regarding the price increase.

While Shorox™ abrasives are made from cerium oxide produced in China, the Chinese Government has drastically cut the issuance of export permits for all rare earth raw materials. This situation will inevitably cause a substantial decline in SDK’s procurement of raw materials. Under the circumstances, SDK has asked its customers to accept reductions in the supply of Shorox™ abrasives.

Furthermore, the market price of cerium oxide has increased to approximately US$50 per kilogram at present. This reflects the soaring raw material price due to the Chinese Government’s export restriction policy, reduced volume of supply due to export permit cuts, and sharp increases in fees.

As SDK has no alternative but to purchase cerium oxide at the current market price, the company has decided to raise the selling price of Shorox™ to meet increased raw material costs.

Demand for cerium-oxide-based abrasives has been growing substantially since the second quarter of 2009 for use in the production of LCD TVs. The demand has returned to the second quarter 2008 level and is expected to grow further. Meanwhile, there is no prospect of relaxation in the Chinese Government’s strict export control policy in and after 2011, and a very tight supply situation is expected to continue.

For more information, contact:
Marketing Department 2, Ceramics Division (Phone: 81-45-453-5125)
IR & PR Office (Phone: 81-3-5470-3235)