In January Philips increased the prices of its fluorescent tubes by 20 per cent. On the same day Sylvania put the price of T12s up by 15 per cent. As pressure continues to pile on, Philips has announced further price increases set for 1 February of between five and 15 per cent.
The letter sent out to customers explaining the changes states: ‘It has been confirmed that the higher manufacturing costs that Philips was subject to in 2011 will continue throughout 2012. In order to maintain a sustainable lighting business, it is necessary for further price increases to be applied to our fluorescent-based products.’
Below is a table explaining the increases.
More price hikes are expected to hit over the coming months from other manufacturers, according to our source.
A report published by the US Department of Energy warned that, of the elements assessed, five rare earths have been classed will be in short supply until 2015 at least. These are: dysprosium, terbium, europium, neodymium and yttrium. Shortages of these elements are expected to affect the availability of fluorescent lighting over the next few years.
The report said: ‘As lighting energy efficiency standards are implemented globally, heavy rare earths used in lighting phosphors may be in short supply.’
For many manufacturers, CFLs are manufactured in China and exported while it is cheaper to ship over the raw materials for linear tubes and construct them at home. The report said: ‘This means that in a tight supply situation with increasing demand for the heavy rare earths contained in phosphors, domestic LFL manufacturers may have difficulty obtaining rare earth phosphors.’
Global attempts to prevent the sale of incandescent lamps are set to increase demand for fluorescents as well as a push towards other eco technologies. Fluorescent lamps contain phosphors made with europium, terbium and yttrium, three of the five heavily constrained materials.
The report states that the projected increase in demand for CFLs and energy-efficient linear fluorescent lamps suggests ‘upward price pressures for rare earth phosphors in the 2012-2014 timeframe’.
‘In the future, LEDs (which are highly efficient and have much lower rare earth content) are expected to play a growing role in the market, reducing the pressure on rare earth supplies.’
Halogen incandescents, LED and OLEDs use little or no rare earths. There is speculation that if the rare earth situation continues as expected it will force further development in other areas.