Dear Loyal Customers:
Because of increasing scarcity and cost of fluorescent lamps from overseas, Pacific Lamp will soon be forced to increase wholesale prices for some fluorescent lamps. We’ve tried hard to hold our costs steady, but increasing pressure from our suppliers requires us to take this step beginning August 1. Thanks for your understanding.
- Your friends at Pacific Lamp Wholesale
Why is this Increase Necessary?
Florescent Lighting relies on some very specialized minerals in order to create “phosphor,” which is the material that allows the lamp to give off white light. These minerals must be mined from one of the world’s few operating “Rare Earth” mines. Until very recently, these materials were not considered valuable, but in recent years their cost has been rising quickly. This is because these minerals are necessary to build many of today’s high-tech devices, including smart phones, flat-screen televisions, hybrid car fuel cells and solar energy panels.
Chinese export quotas
Increasing demand is only part of the reason for the increase in rare earth prices. Rare Earth mines in China account for 97% of the world’s supply. Last year the Chinese government announced that it would be cutting the amount of rare earth it exports, a decision that brought criticism from the World Trade Organization.
Future development in Russia, Canada, South Africa, the US, and even under the ocean
Many mining companies around the world have been working to develop new sources of rare earth. Experts believe that there are huge amounts of these minerals available if they can be mined efficiently. Russia, Canada, South Africa and the United States all have deposits of these minerals, and recent discoveries indicate that there is plenty more under the oceans.
But in the short-term, costs for products like fluorescent lamps will continue to rise. In one recent five-month period, costs for phosphor rose more than 800%.
Unstable Rare Earth sources create difficulties for US fluorescent retailers
American businesses that sell fluorescents, including Pacific Lamp Wholesale, have been challenged to find ways to keep fluorescent lamp prices competitive. Many of our competitors have already increased their prices, even as Pacific Lamp has struggled to continue delivering fluorescents at the same price as in the past.
Unfortunately we are unable to absorb these increasing costs. In the 30+ years we’ve been in business, Pacific Lamp Wholesale has built a reputation for delivering quality products at the best prices available, and we will continue to do so.
Instability in Rare Earth costs and the resulting increases in fluorescent lamp costs from our suppliers are forcing us to adjust our prices, which is something we hate to do. No one likes to have to pay more, but we want our customers to know that we will continue to provide our products and expert service at the best prices available.
Further Reading
http://www.atlanticenergyconcepts.com/News/The-Impact-of-Rare-Earth--Metals-Shortages-nwMFT_120.aspx
http://globalpublicsquare.blogs.cnn.com/2011/07/25/the-secrets-and-shortcomings-of-chinas-mammoth-rare-earth-industry/
http://www.businesslive.co.za/southafrica/2011/07/24/rare-earth-demand-on-the-rise
