PCB News - PCBA manufacturers issued price increase notices

PCBA manufacturers issued price increase notices
With the arrival of the traditional peak season in the second half of the year, electronics manufacturers have great demand for copper foil and copper tubes, and the price of electrolytic copper has risen rapidly, which may gradually be transmitted to downstream manufacturers.PCB board prices have increased one month in advance, and the supply chain has been intensive recently. Issue a notice to increase the price of PCB products by 10%.

1. Costs have risen, and circuit board prices have risen by 10%
In early July, several companies successively issued notices of price increases for copper foil, copper clad laminates, etc. The price increases were 1,000-2,000 yuan per ton for copper foil, 10 yuan per sheet for cardboard, and 5 yuan per sheet for insulating glass fiber ccl., The sheet material will be raised by RMB 5 per sheet. Recently, many PCBA companies have issued notices of price increases for circuit boards, and the increase is almost 10%. In fact, since September last year, some PCBA manufacturers have issued price increase notices to increase product prices in order to shift the pressure of rising raw material costs. At present, it has risen twice. According to these latest price increase notices, the rising costs of sheet metal, labor, and chemicals have become the three major factors in this price increase. LED display manufacturers took the lead in raising prices, mainly due to the prosperous LED small-pitch display market, and began to replenish inventory. Raw materials are stocked to reduce inventory costs.

After experiencing the fierce shortage of goods at the beginning of the year, most manufacturers have been prepared for the increase in the cost of plates and chemicals. The increase in labor costs is mainly because the government requires the Yangtze River Delta and other parts of the Pearl River Delta to raise the minimum wage standards, and many production enterprises The wage standard has been raised independently, and most of the newly recruited employees are novices. In the actual process of training and production, the production cost has been intangibly increased.

2. The peak season is coming, and orders for copper pipes and copper foil are full
Copper tube

The high temperature and hot weather sweeping the country, coupled with the prominent demand for air conditioning replacement, has made the air conditioning market extremely hot, and both online and offline are facing tight supply issues. Tmall has become the first platform to announce that air conditioners are out of stock. Data show that from the beginning of 2017, the cumulative sales of air conditioners have increased by 37% year-on-year. Among them, domestic sales have increased by 66% year-on-year, and exports have increased by 13% year-on-year.

As an important terminal for the consumption of copper pipes, the boom in the air-conditioning industry has rebounded significantly, which will inevitably also significantly drive the production and sales of related industries. According to SMM survey data, the operating rate of copper pipe enterprises in June was 89.82%, a year-on-year increase of 19.38% and a month-on-month increase of 0.27%. Orders from copper pipe companies remained hot in July, and the operating rate was still at a high level.

Copper foil

The trend towards new energy and electronics in automobiles is accelerating, and the automotive PCB market has increased significantly; the market for small-pitch LEDs continues to rise, and the demand for multi-layer PCB boards is strong; mobile communication technology is iterating rapidly, and the construction of high-density small base stations drives high value-added PCBs Demand: China's high-end server market is growing rapidly, and the demand for high-standard PCB products is increasing. In addition, the thinning of consumer/automotive electronics has driven the volume and price of FPC to rise.

Copper foil, the main raw material of PCB copper clad laminates, has entered a price increase cycle since the second half of 2016. The highest has reached 110 yuan/KG. Since April this year, due to the comprehensive factors such as downstream price pressure and inventory handling, the price of copper foil has appeared. Decrease, the current price is about 60-70 yuan/KG. Recent industry chain news shows that after more than three months of digestion, the second half of the year is the peak season for the PCB supply chain to pull goods. Since July, the electrolytic copper foil factory has full orders, and the processing costs will pick up in August. A number of copper foil supplies Traders have begun to raise the order price by 1,000 to 2,000 yuan/ton, and the effect of the price increase is now being highlighted.
In short, if the spot price of electrolytic copper fluctuates greatly, it will directly affect the supply of copper foil, which is already high in price. I am afraid that it will lead to a wave of price increase speculation. PCBA manufacturers should prepare materials in advance and sign contracts with suppliers in advance., Guarantee the supply of raw materials, arrange the production plan in an orderly manner, and avoid the dilemma of out of stock. At the same time, PCB industry resources began to concentrate on large companies with guaranteed demand, high yield, and cost control. Large PCB manufacturers have long-term contracts with upstream manufacturers because of their strong bargaining power. The price change range is not large, and the price is increased. Mainly affects small and medium enterprises.