Print article
Prices for tantalum capacitors have increased 5-10% in recent months, but price should stabilize unless the price of tantalum increases dramatically.
Prices increased because suppliers took capacity off line last year during the downturn, but now demand has picked up resulting in longer leadtimes and higher prices.
"The market has changed dramatically," says David Valletta, executive vice-president for worldwide sales at Vishay Intertechnology, based in Malvern, Pa. "We see demand increasing in all regions including North America."
It's a far cry from what was happening in the tantalum capacitor market in the first quarter of 2009
Because of the recession, tantalum capacitor demand fell dramatically in the first quarter as demand for end electronics equipment declined. "Everyone slammed on the brakes and took capacity off line, closed or idled plants. We did the same," says Valletta. Tantalum capacitor inventories were high in the first quarter but burned off during the year.
Tantalum capacitor demand started to pick up in the third quarter and suppliers started to bring capacity back on line.
Because of low inventory levels, increasing raw materials costs and growing demand, tantalum capacitor tags increased 5-10% since September, says Valletta. Prices should be stable unless the price of tantalum ore rises. In fact, the price of tantalite from which tantalum is derived has increased from about $35/lb in December to $39/lb in January, according to website metals.com.
Buyers can expect inventory levels to remain relatively low for the next quarter or two.