On July 18, according to media reports, domestic PCB manufacturers increased their costs due to environmental issues and raw materials such as copper (clad laminates, copper foil), which led to a collective price hike. Since July, including Omron Electronics, Jianye Group and other PCB factories have issued price increase notices; as for the Taiwan factory, according to industry sources, there are still a lot of idle production capacity. It is not easy to follow the price increase at this stage.
First of all, as for the price increase of the raw materials, the copper price is the most concerned, and the rise of the copper price has significantly increased the cost of the copper foil substrate factory and the PCB manufacturer. According to industry statistics, the cost of PCB raw materials accounts for 33%. Among them, the cost of raw materials for copper foil substrates for thick copper accounts for 18%-20%. In addition, copper foil accounts for 30% of the total cost of copper and copper foil substrates.
In addition, in recent years, the awareness of environmental protection in the domestic market has risen, from the Kunshan limit in Jiangsu at the end of 2017, to the limited discharge in Zhuhai and Shanghai, to the strict inspection in Shenzhen, etc., based on the sewage discharge problem of the PCB industry, the PCB factory at this stage, regardless of Taiwanese capital Land, capital, and even foreign capital are all unpopular industries in the mainland. For this reason, in addition to the pressure of rising costs, the PCB industry has to shrink its production capacity and eventually face pressure to leave.
As a result, the PCB industry has increased the pressure on the cost of raw materials, and after the environmental problems caused by the problem of limited production capacity, the intra-indoor PCB companies have begun to inform customers of price increases since July. As for the Taiwanese factory, it is limited by the unsatisfactory demand. So far, the capacity is still limited. In addition, the price increase of the copper foil substrate factory in the second quarter of this year is not obvious. Therefore, the industry believes that it is too difficult to follow the price increase at this stage. high.
According to the news of the price increase, according to the mobile phone report online, the reason for the basic price increase is mainly due to the above two factors. On the one hand, the rise of raw materials, on the other hand, the environmental protection department is very restrictive. However, according to the author from the Shennan circuit, the other party said that there is no price increase, nor has it fallen!
In addition, some people in the industry told the author: “Is it true that the price increase is confirmed? I have not seen the direct documents. The environmental pressure is indeed there. The raw material prices are currently low in the year, but it is estimated that it will rise next. More is the current environmental protection. Under the pressure of raw materials, the industry is upgrading and transforming, eliminating backward production capacity.” Some institutions believe that with the replacement of 5G communication equipment and the localization of materials, the industry will realize the logical transition from cycle to growth. But for small and medium-sized manufacturers, it will undoubtedly cause a big impact, especially some small non-compliant manufacturers, without huge capital upgrades, will face the risk of bankruptcy!
According to the long-term follow-up observation of the mobile phone newspaper online, as early as 2016, the copper price began to rise from March, and the lead is mainly the second largest copper foil substrate manufacturer in China, Jianye Chemical (now renamed as Jianye Group). As of the end of 2016, both the lithium battery copper foil and the standard copper foil have been in a state of pricelessness. In 2017, the price of copper foil / CCL has not been alleviated! Due to the price increase of copper foil / CCL, the price of PCB board manufacturers is also rising! Previously, the mobile phone newspaper online has reported many times, PCB manufacturers Jianye laminate and Jianye Chemical continue to increase prices, prompting revenue and stock prices are also rising!
In 2016, some copper foil companies have long been unable to meet the long-term low-cost shut-off of factories and some copper foils to turn to lithium batteries for electric vehicles. The supply of copper foil for printed circuit boards (PCB) and copper foil substrates (CCL) continues to be in short supply. According to data from the China Chemical and Physical Power Industry Association, the price of raw materials for lithium batteries, including copper foil, electrolytic solvents, and salt-drilling, is very obvious, and the price increase of some products has even reached 50%. The CCL is also affected by the lithium battery and the automotive market, resulting in out-of-stock prices!
On August 21, 2017, the world’s largest CCL supplier Jianye Laminate announced the price increase notice again. From now on, its PCB sheet (CCL) and PP (prepreg) will increase by 10 yuan/sheet and 10% respectively. . This is the third time the company has issued a price increase notice after entering July. The first two were July 7 and 26 respectively, and the price increases were 10 yuan/sheet and 10% respectively.
At that time, Jianye Chemical also said that in the second half of the year, the electronic products market entered the traditional sales season, the demand for copper-clad panels increased significantly, and the supply shortage became more apparent. The Group has once again raised the price of its products. The Group is increasing sales of high value-added copper-clad panels, and new capacity will be gradually released, and operational efficiency is expected to continue to increase. The number of orders for the printed circuit board sector has increased considerably, and the production capacity of high-end circuit boards is in short supply.
On the evening of November 21, 2017, according to the announcement of Shengyi Technology, the company will publicly issue convertible corporate bonds with a total face value of 1.8 billion yuan for a period of six years. Mainly used in the high-heat-conducting and high-density printed circuit board CCL industrialization project (Phase II), the annual output of 17 million square meters of CCL and 22 million m of commercial bonding sheet construction projects, of which the former will invest 10.12 100 million yuan, using 700 million yuan in fundraising, the latter will invest 1 billion yuan, using 900 million yuan in fundraising! In addition, the establishment of a new R&D office building will invest 298 million yuan, and the total investment of the three major projects will reach 2.31 billion yuan!
From an environmental point of view, as early as December 2017, a number of Jiangsu Kunshan industrial enterprises were notified: On December 24, 2017, Kunshan City’s Office of the Leading Group for the Promotion of Special Actions for the Reduction of the Three Governance of the Three Branches issued Document No. 186. (2017), it was decided to implement a comprehensive shutdown of the industrial enterprises of the three sections of Wusongjiang Zhaojing (Shipu) from December 25, 2017 to January 10, 2018. . A total of 270 industrial enterprises will be fully suspended.
Among them, the 270 companies include 3 resistor companies, 1 semiconductor company, and hundreds of PCB circuit board companies. A number of companies confirmed receipt of the suspension notice. Zhou Guohua, deputy director of the Safety Production Supervision and Management and Environmental Protection Bureau of Kunshan High-tech Zone, confirmed the authenticity of the notice, but said that the plant was not completely shut down, but only required to produce wastewater to reduce emissions.
In addition, according to media reports, in the rapid fermentation of the follow-up effect caused by domestic restrictions, the industry recently said that the relevant policies have hit the second-line land-based factories that are not law-abiding. At present, the local atmosphere and the Taoyuan area in Taiwan began to pay attention to environmental protection two years ago. The recycling of waste materials is comparable, and Taiwanese factories are relatively unaffected by the high-standard environmental protection mechanism.
Domestically, this year began to conduct environmental inspections for many electronic manufacturing and chemical materials industries, especially this year, the new environmental protection tax is on the road, although the official is mainly to replace the sewage charges, although the sewage charges may be changed from official fees to environmental taxes. However, the actual operation still needs to pay the waste processor related costs, which is equivalent to adding a green tax. Due to the high production costs and the official rectification of waste water and waste gas manufacturers in the mainland, local industry experts believe that at least one small and medium-sized PCB manufacturers in China will face a collapse in this year.
In addition, according to relevant sources, the PCB industry has been shuffling in the past two years. Undoubtedly, under the supervision of relevant policies, the speed of shuffling will accelerate! It also stressed: “The PCB industry shuffle begins with the fluctuation of raw material prices, followed by the acceleration of the capital market, and the environmental protection department has also slammed it. Multiple factors have prompted the industry to reshuffle and eliminate unqualified small enterprises, making the industry concentrated in these two years. Rapid improvement!”
According to Zhu Rongwei, director of Jinbaize Enterprise Development Department, “the environmental protection tax levy, the rising prices of raw materials and the environmental protection storm, the supply-side reform is still the main theme of the industry, and the industry concentration is further improved. In the fourth quarter of 2017, orders from many large manufacturers were full. In the case of selective chopping, at the same time, a large amount of production capacity is under construction and transferred to the inland and western regions.” It also stressed that from January to October 2017, domestic enterprises completed investment growth of 30.30%, including joint-stock companies. And state-owned enterprises grew rapidly, with growth rates reaching 95.30% and 54.40% respectively.