Taiwan: commodity costs push lighting firms into price rise

China Electric Mfg. Co., Ltd., Taiwan Fluorescent Lamp Co., Ltd. and Philips Taiwan Ltd.“s Lighting Division decided to increase prices of their products by at least 5% early in July 2006 to reflect …

China Electric Mfg. Co., Ltd., Taiwan Fluorescent Lamp Co., Ltd. and Philips Taiwan Ltd.“s Lighting Division decided to increase prices of their products by at least 5% early in July 2006 to reflect the rapidly rising prices of commodities such as copper, iron, aluminium ingots, and glass. On 30 June 2006 alone, the price of copper jumped USD 500 to USD 7,560 per metric ton. China Electric“s executive vice president, Simon Wu, pointed out that copper, aluminium ingots, and glass account for around 70% of his company“s total production costs. China Electric decided to raise prices by 7-10% early in July 2006 to reflect the increased prices of the commodity materials. Wu noted that the company produces 350,000 sets of lighting fixtures a month, making it the largest lamp supplier in Taiwan. In early May 2006, the company raised prices of its lighting fixtures for the first time, by around 10%, after significant price cuts to deal with undercutting rivals. Taiwan Fluorescent Lamp“s vice chairman, N.S. Cheng, said the firm would raise prices of its lighting fixtures and tube lamps by at least 5%. General Manger Edward Po of Philips Taiwan“s Lighting Division said that the company would definitely increase prices of its products as costs of raw materials had risen more 10%. He added that the company was inclined to make a single price rise of at least 5%.