PCB industry has entered the era of high cost

- Oct 20, 2018-

The capacity contraction of the supply side dominated by the glass manufacturer: the glass industry is highly concentrated and has obvious periodicity.In the situation that the market of glass fiber electronic yarn/electronic cloth in the early stage continues to languish, many enterprises that own glass furnace give priority to the development of glass fiber roving products. The project of newly built glass fiber furnace is reduced. Among the domestic funded enterprises, taishan fiberglass only constructed 50,000 tons of glass fiber furnace, which was put into operation in November 2015.In 2016, taishan fiberglass and chongqing international Shanghai fiberglass furnace were shut down, reducing by 3.80,000 tons of electronic glass yarn.In addition, chongqing international base has a glass fiber furnace cold repair production, the industry electronic glass fiber yarn in a small decline in production capacity.In the case of limited production capacity of electronic glass fiber yarn, the supply and demand tends to be tight in the short term.

The pressure of environmental protection is increasing, and the shrinking output of imitation cloth causes the change of the supply and demand relationship of electronic glass fiber gauze.

Under the guidance of the new industrial policy, the production capacity of electronic cloth tends to be concentrated in the glass furnace, resulting in increased pressure on professional manufacturers of electronic cloth.

Since the beginning of the year 18, the price of some fiberglass cloth has begun to loosen.We have learned from the market that the decrease of 7638 cloths and 2116 cloths on thick plates is relatively large, with an average decrease of 5% ~ 18%.The price of fiberglass fabrics for thin sheets remains high.In the early stage, the pit kilns under cold repair started to fire successively in 18Q2, and the capacity was gradually released. This year, the major factor affecting the supply side will be the environmental protection production limit, and the medium and low-end enterprises will be further cleared.

1.3.Resin prices remain high

Synthetic resin is one of the most important raw materials for copper clad sheet because of its good mechanical, electrical and bonding properties.Different types of PCB have different requirements for resins: generally speaking, single/double panel, multi-layer board and HDI are mainly made of phenolic resin and epoxy resin, high-speed/high-frequency board is mainly made of polytetrafluoroethylene, and the recently popular halogen-free copper clad board is made of environmental non-bromine resin.Currently, our suppliers in China and Taiwan mainly supply phenolic resin and epoxy resin.

Besides the downstream demand, there are two other reasons for the rising cost of epoxy: raw materials and environmental protection.In terms of raw materials, the upstream industry of epoxy resin (mainly oxychloropropane and bisphenol A) is closely related to the global crude oil price trend. The crude oil price keeps rising this year and the resin price continues to reach A new high.In terms of environmental protection, many manufacturers in huangshan, shandong and other places do not meet the environmental protection requirements, resulting in production cut and production suspension, or raising production costs to meet the environmental protection requirements, thus promoting the continued rise in the price of epoxy resin.

1.4.Upstream raw material prices directly affect the price of copper clad sheet

Copper-clad sheet is the most basic material of PCB, also known as base material.It is also called Core when it is used in multi-layer production.It is mainly divided into two categories: rigid copper clad plate (CCL) and flexible copper clad plate (FCCL), which are further divided into different material types according to the downstream demand for different performance.Judging from the current market demand for copper clad plates, four major trends will emerge in the future:

(1) meet the environmental requirements of lead-free and halogen free;

(2) lightweight and high strength, thinner;

(3) meet the requirements of high frequency and high speed in the future;

(4) able to adapt to more complex working environment, such as high heat resistance, corrosion resistance, etc.

At present, Japan, the United States and Europe have focused on composite, special substrates and other small but refined areas.