company news about PCB raw materials continued to rise wildly in 2021

PCB raw materials continued to rise wildly in 2021
In the first quarter of 2021, the price of PCB raw materials including copper foil, glass fiber, resin and other related materials continued to rise. Recently, from CCL factory to PCB Factory, we have received notice of material price rise. PCB manufacturers pointed out that the price of high-end CCL materials has officially increased. Relevant supply chain industries reported that in the case of unbalanced growth in supply and demand, the supply of PCB upstream materials will be very tight in 2021, and only more and more cases of price rise will occur.
Over the past two months, copper prices have soared and will break through the $8000 per ton mark at any time. The high-end reverse copper foil required for high-frequency and high-speed materials has led various PCB and IC substrate manufacturers to raise prices and seize production capacity due to the shortage and small scale of suppliers. In addition, the demand for electrolytic copper foil for electric vehicle batteries has surged in the past, and the supply shortage of calendered copper foil required to squeeze to PCB may reappear in 2021.
In terms of glass fiber, only a few suppliers such as Nitto boseki, a Japanese chemical material company, can provide it. However, there will be a fire in 2020, and the market demand may further rise by 2021, and the PCB supply chain may have to raise prices to grab goods.
The resin part has a similar situation. The expansion speed of high-end products can not keep up with the demand. At the same time, there are accidents in the production line, affecting the normal operation of the production line.
Overall, no matter how the price changes, the shortage of upstream PCB materials is the norm in 2021.
Chemical raw materials have always been the advantage of large factories in Japan. Many PCB raw materials are still imported from original factories in Japan, especially high-end materials. Relevant supply chains show that most Japanese chemical materials companies are controlled by large consortia. They often have to consider business strategies and are often conservative in expanding production capacity. The flexibility of adjustment is also relatively low, and the spread of the epidemic in Japan may be more serious than the official announcement. The stability of Japan's chemical material supply is also a great risk.
Due to the rise of raw material prices, PCB manufacturers are difficult to resist the price rise pressure of upstream material manufacturers. In order to ensure stable supply, they have to accept the cost transfer of CCL factory and have no choice but to transfer the cost to customers.
In addition, different applications and end customers will also determine the actual impact of price increases. For example, IC carriers, which have risen again recently, usually face the price adjustment of upstream materials. The whole upstream and downstream go all the way to the end customers to discuss the cost transfer, so as to minimize the damage of manufacturers at all levels by the price rise as much as possible.
Generally, the more high-end products, the greater the cost tolerance of end customers. On the contrary, if it is a large general low and medium layer PCB, customers may ignore the cost factors and hand over the raw material pressure to the supply chain, which will put more pressure on the PCB Factory