Manufacturers raise the price of carbon fiber
If you were looking at carbon fiber as the magical lightweight solution to the parallel automotive woes of low power-to-weight ratios and high fuel consumption, we have some potentially disappointing news for you. Two of the world's largest suppliers of carbon fiber have announced that they are raising their prices. And not by a little, either, with the going rate for the high-tech material rising by 10 to 30 percent in one shot.
The simultaneous announcement from Toray Industries Inc. (the #1 supplier of carbon fiber) and Mitsubishi Rayon Co. (the third largest) marks the first time both companies have universally raised their prices at the same time. The development would border on price-fixing if not for the fact that the second biggest carbon fiber manufacturer, Teijin Ltd., didn't participate. However Teijin is expected to announce its own price hike sometime this week, as well.
We all expected prices to drop as use of the exotic material became more commonplace in automotive, aerospace and commercial applications. However the rising costs of raw materials have contributed to the higher price. They're at Y4,000 (~$37) per ton now and are expect to go up by between Y400 and Y1,200 per ton. Because of the high demand for carbon fiber, the price increase is expected to take immediate effect. As for the impact on he automotive industry, it could mean price increases for cars using the material, while the development of new cars is likely to forgo employing carbon fiber in their construction for other materials like aluminum and plastic. Hopefully Honda and Nissan finish developing their mass-market carbon fiber sooner rather than later.
[Source: TradingMarkets.com via Carbon Fiber Gear]
Reader Comments (Page 1 of 2)
Ian7 5:41PM (8/05/2008)
The Dreamliner and A-380 are sucking the carbon fibre industry dry; this is not a surprise...
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Brian 5:43PM (8/05/2008)
Something here doesn't compute, to this layman at least. Hot rolled steel (which I believe is what is used in automotive applications, but correct me if I'm wrong) is currently selling for $740 per ton (http://www.econstats.com/rt_steel.htm). Carbon fiber, according to this, is selling for $37 per ton. So steel is TWENTY times more expensive than CF?
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chrisdavis 6:43PM (8/05/2008)
I believe comparing their value by weight is not the best metric.
polar 6:08PM (8/05/2008)
The raw material is selling for that, NOT the woven fiber or the fiber itself.
Snutz 6:30PM (8/05/2008)
I'm pretty sure that number is off by a factor of about a thousand. Found a USA Today article from last year saying that prices had increased to $20 a pound, which would be $40,000 a ton. Seems reasonable considering that with the light weight of carbon fiber, a ton is a lot of material. Do some fact checking next time Autoblog.
http://www.usatoday.com/money/industries/manufacturing/2007-06-05-carbon-fibers-usat_N.htm
Snutz 6:32PM (8/05/2008)
That's what I thought at first too polar, but when you click through to the article it makes it sound like the finished product.
"The current price is around Y4,000 ($US37.01) per ton, so prices will go up by a range between 400 yen and 1,200 yen per ton if the full hikes go through. "
why not the LS2LS7? 10:06PM (8/05/2008)
Steel is very cheap to work. You can stamp it or draw it in no time. Laying up CF takes a lot of work. This is the same thing with FRP ("fiberglass" like Vette bodywork) versus steel. The FRP is much cheaper to buy but takes more effort to work into shape.
TJ 5:45PM (8/05/2008)
Ban carbon!
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studemax 5:55PM (8/05/2008)
Well, the tuner market doesn't need carbon fiber anyway, but all the airplane makers will be raising their prices.
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Cameron 6:04PM (8/05/2008)
I think the traditional CF companies are scared of the start-ups that are well on their way to making CF stamp-able in a press just like rolled steel body panels for cars.
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AMcA 9:05PM (8/05/2008)
I'm very skeptical about cheap carbon fiber. They've been making CF for many years now. And if it could have been made cheaper, the aviation industry would have gobbled it up & cheap CF would already have happened.
I just don't see it.
why not the LS2LS7? 6:07PM (8/05/2008)
We already have mass-market carbon fiber.
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Carlos 6:43PM (8/05/2008)
Mass market as in every car is made out of CF?
tankd0g 10:08PM (8/05/2008)
The weave pattern verniers on Pep Boys "carbon fiber" parts don't count :)
why not the LS2LS7? 10:08PM (8/05/2008)
Mass market as in nearly everyone has a something with CF in it in their house. I have a pair of shoes with CF in them. You can get a knife with CF structural parts for a small markup over steel.
CF is fairly cheap. What's really needed now is more expertise in designing with it. That and the ability to put a better finish (including color, like paint that won't come off) on it.
gary 7:01PM (8/05/2008)
Boeing is the company that should be worried about this increase. Since it uses carbon fiber by the tons in it's new 787.
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LCN 7:51PM (8/05/2008)
Boeing really doesn't have to worry. They are selling their selling their 787 for hundreds of millions of dollars, and their only major competitor in the 787's segment, the Airbus A350, will also be extensively using CF. Because of this duopoly, they can both raise their prices by a couple of million to cover the costs. In addition, it is likely they have contracts in place ensuring they get it at a certain price. (I believe that they also do this with titanium form various Russian companies and in currency hedging)
It is the smaller players in a more competitive industry, such as the car/boating industries, that this is going to hurt the most.
why not the LS2LS7? 10:09PM (8/05/2008)
Not only does Boeing outsource the CF parts, but they have contracts for delivery of CF (and titanium, which is more volatile and expensive) for years to come.
Don't worry about them.
I would imagine Airbus has similar deals.
mk 8:43PM (8/05/2008)
I thought there was an excess of carbon, and it was going to kill us all? Footprint and all! :rolleyes:
With all of this CO2 that people are so affraid of, and sequestering, and everything...
Can someone not split that off into graphite material, and O2? More oxygen to breathe, and more carbon for carbon fiber!
Or we could just let the plants metabolize it, like the world has done for eons upon eons.
Carbon is one of the most abundant elements on this planet, it even has it's own branch of chemistry. (organic)
Gee, then why aren't diamonds and carbon fiber more prevalent? :rolleyes: again. It of course isn't that simple.
At least we can still get graphite pencils... before those get too rare.
[/remove tongue from cheek, at least a bit.]
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Mike W 7:04PM (8/05/2008)
is that a ZR-1 in the picture? just curious.
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