PCB News - There are many doubts about the prosperity of Q3, and the growth of glass fiber yarn has slowed down

There are many doubts about the prosperity of Q3, and the growth of glass fiber yarn has slowed down

Since January of this year, the quotations of glass fiber yarn and fiberglass cloth in the upstream of printed circuit boards(PCB) have continued to rise; The increase in gauze has slowed.
The unified investment advisory report pointed out that, benefiting from the South Asia’s glass fiber mill, Taiwan Becheng shut down its furnace for cold repair in May. In addition, in the second half of this year, Becheng and other peers still have kilns that will be shut down for cold repair. The supply of fiber yarn production capacity will be reduced by about 10%. Therefore, since January this year, the quotations of glass fiber yarn and glass fiber cloth in the upstream of PCB have continued to rise.
However, due to the heating up of the European debt crisis in the second quarter of this year, customers tended to be conservative in sourcing. The unified investment advisory report pointed out that in May and June downstream PCB companies such as Tripod (3044), etc., have clearly felt that their customers have insufficient momentum in sourcing goods, including computers. (PC) The overall utilization rate in the third quarter is conservative.

In addition, Unigroup Investment Advisor pointed out that in June, the revenues of copper foil substrate (CCL) factory Taiwan Optoelectronics (2383), Lianmao (6213), and Taiyao (6274) generally declined by 5% to 15% compared with May. Demand for display terminals Weakness, the midstream and downstream players have conservative inventory reserves.
According to the unified investment advisory report, recent interviews with PCB midstream and downstream industries generally have doubts about the peak demand of the electronics industry in the third quarter. At present, it is no longer acceptable for the upstream to continue to increase prices; the June quotations of fiberglass yarn and fiberglass cloth are only higher. From a monthly increase of 0% to 2%, the slowdown in the price increase reflects that customer demand is everything that determines the price.
【Related Reading】The price of fiberglass gauze remains high this year
The debt crisis in Europe in the second quarter heats up, leading to a conservative trend in customer solicitation. However, the prices of fiberglass yarn and cloth remain high this year. OTC manufacturers Jianrong (5340), Fuqiao, and Dehong initially estimated that the second quarter Both gross margin and profit will be better than the first quarter.
For the listed fiberglass yarn and cloth factories, only Fu Qiao had better revenue in June than in May. In the second quarter, only Dehong was better than in the first quarter. The gross margins and profits of the two companies grew simultaneously. The industry believes that in the second half of the year It is the traditional peak season for printed circuit boards(PCB). As Nanya's glass fiber mill Taiwan Becheng shut down its furnace for cold repairs in May, at least two yarn kilns on both sides of the strait will follow up in the second half of the year, so the product prices are bullish.
Jianrong’s June revenue fell by more than 25.69% compared to May, and the second quarter’s revenue decreased by 12.55 per cent. All three of its peers declined the most. However, the company’s settlement gross margin for the second quarter was 13%, the highest in the past four quarters. Get rid of the dilemma of gross loss and loss for two consecutive quarters.
Jianrong said that the European debt crisis in the second quarter heated up, causing the related electronic technology industry to tighten inventory. This is also the case for downstream copper foil substrates (CCL). Coupled with inventory factors, the price of electronic grade fiberglass cloth remains high this year. Favorable operation.
The price of PCB electronic grade glass fiber yarn and cloth has risen month by month from March to June this year, and the price has remained high-end. Even if downstream CCL customers tend to be conservative in sourcing goods in June, they will still promote Jianrong, Dehong, and Fuqiao. After the gross margins and profits of the three OTC companies in the second quarter, the industry also judged that electronic grade glass fiber yarns may increase in quantity and prices in the second half of the year.