High purity quartz- also known as quartz or HPQ, is a critical and rare raw material that only form under a narrow set of chemical and physical conditions. Owing to its physical property of having less than 50 ppm of impurities, high purity quartz is obtained at very attractive prices and is used in advanced, high technology sectors- presently witnessing rapid expansion including photovoltaic solar cells, semiconductor industry, long distance optical fibers used in communication networks and glass manufacturing. Since high quality quartz is used in high-tech industries and is rare to find, to cater to the growing demand- companies are looking for more sources of high quality quartz with increased investment in research & development activities to develop synthetic HPQ. Before being used in high-tech industries, quartz is required to undergo stringent refinement process with the help of specially designed equipment, in order to minimize the quantum of impurities present in them.
Owing to this increased demand, according to a research study, the global high purity quartz market is anticipated to record a significant CAGR of 7.0% between 2018 and 2026. However, since the demand is high and high purity quartz used in very niche industries, very few manufacturers are delivering the same making the global high purity quartz market highly competitive, but with very little technical expertise. Apart from this, several factors are impacting the present high purity quartz market, including:
Difficult Processing: As already mentioned, to be used in niche industries, high purity quartz needs to undergo tough processing to meet industry standards. And, depending upon the industry, high purity quartz is then freed of any impurities. However, studies have revealed that some naturally occurring high quality quartz have very low boron and phosphorus content- restricting some HPQ applications. Additionally, sample separation and analyzing small parts per billion are two refinement steps that has the highest chances of letting in impurities in high purity quartz.
Pricing Swing: According to a research analysis, cost of HF acid/fluorspar and other chemical aides used to process high purity quartz are responsible for fluctuating market price.
Market dilution: Owing to low natural availability, increasing cost of HF and other chemicals, production and processing secrecy and non-ecological production techniques, many key players are setting up infrastructure for HPQ production from low grade quartz with purities as low as 95 percent- which, in turn, would weaken the high purity quartz market. Additionally, since HPQ is highly competitive market, not much technical expertise has been on display. Also, prominent suppliers do not disclose their processing techniques owing to fear of losing margin and letting in new players.
The factors mentioned above could pull down otherwise flourishing high purity quartz market. Insights presented in this article are an outcome of extensive market research by Persistence Market Research and can be viewed in detail at here.