BANNOCKBURN, IL – The IPC Solder Products Value Council has released a white paper addressing current global supply and demand of tin and silver. The cost of tin and silver has reached 19-year highs, says the council, and global demand for tin will exceed production by 30,700 metric tons, according to The International Tin Research Institute.  The primary reason behind this shortage is a 30% reduction in tin exports from Indonesia, according to the white paper. In the past six months, the price of tin has increased more than 40%, and lead-free solder paste contains more than 85% tin. Over a 15-month period, the cost increase of tin and silver combined in solder paste is $6.58 ($12.28 -$5.70) for tin, and $4.53 ($12.22-$7.69) for silver, a total of $11.11 in higher costs per kg of solder paste, reports the council. This represents a cost increase equivalent to between 20 to 30% of the global average sales price for solder paste sold for electronics assembly.  The council recommends electronics assemblers closely communicate with soldering material suppliers regarding supply and availability during this period of volatility in the market price of metals.

HELSINKI – Elcoteq cut its forecasts for 2007 because of intensifying competition in Europe, warning it would make no money from operations this year. The EMS firm, one of the eight largest in the world, reported a first-quarter operating loss of 23 million euros ($31 million). In a statement, the company said it would report breakeven operating results in 2007, not including one-time charges, on a slight uptick in revenues. It had previously guided for sales growth of around 10% and increased profits. Elcoteq said it would take a first-quarter writedown of 30 million euros in one-time charges as part of a cost-reduction program. It also upped restructuring costs guidance to 35 million euros, from an earlier estimate of 20 million euros.