In 2018, The Industry Cost And PCB Industry Demand Analysis In China.

- Jan 27, 2018-

1. Supply side: the price of raw materials affects the cost of copper-plate.

 

Copper clad combination costs a lot to production volume larger copper clad on the market at present the product type, copper foil, glass fiber cloth and resin, and other manufacturing cost (including human, warehousing logistics, equipment depreciation, water and electricity coal, etc.), generally accounts for the proportion of the total cost of 39%, 18%, 18% and 18% respectively.Among them, the proportion of three raw materials is more than 70%, and its price is the key factor that affects the cost of copperplate.

 Copper plate manufacturing cost approximate proportion.

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   1. Standard copper foil.


Due to the production of high quality copper foil especially the key parts of the equipment need to be imported and cycle is long, so the copper foil production capacity expansion not only investment is larger and the average cycle is at least a year, slower productivity growth ability.China association of electronic materials, according to the global copper foil production capacity and slow growth in recent years, the production capacity increased from 2010 tonnes in 548000 to 2016 tonnes in 650000, the average annual growth of 2.41%, production by 398000 tons to 506000 tons, annual average growth rate of 4.08%.See from electronic copper foil association statistics, domestic production capacity, production of copper foil, respectively, from 2010 in 209900 tons, 161300 tons to 399000 tons, 291600 tons in 2016, the average annual growth rate of 11.30%, 10.37%, growth is significantly higher than the world level.

 

Statistics and forecast of global copper foil capacity and output from 2010 to 2018

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Domestic copper foil production capacity and

production change statistics from 2010 to 2016

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   At present, copper foil can be divided into three types: standard copper foil, lithium copper foil and other USES of PCB.Due to the booming development of the new energy automobile industry, the demand for lithium copper foil has been increased. In the case of rapid expansion of copper foil, the supply and demand of copper foil has been in a tight position since mid-2016.Standard and at the same time, due to the lithium electricity copper foil copper foil is put in bigger difference on production equipment and technology, electronic use standard copper foil to require high precision product but lithium electricity profit higher than the standard PCB copper foil copper foil, copper foil production profit driven most manufacturers to lithium electricity industry, the new capacity also continue to favor the lithium electricity copper foil, copper foil overall price from lithium electricity copper foil for cause into comprehensive price increases.The rapid price rise of standard copper foil in short supply and demand is driving up the cost of manufacturing coppers.

Changes in the production ratio of copper foil and lithium copper foil in China from 2011 to 2016.

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   2. Glass fiber cloth


China has become the world's largest producer of fiberglass.In 2001 after China's accession to the WTO actively absorb the introduction of glass fiber pool kiln production, domestic cost advantage and industry chain gradually perfect global glass fiber industry to China, China's glass fiber industry to rapid development.From 2000 to 2016, the total output of China's fiberglass industry increased from 273,000 tons to 3.62 million tons, and the compound growth rate was 18.81%, and the output remained stable for a long time.In 2007, the total production of fiberglass in China was 1.6 million tons, and China began to become the world's largest fiberglass producer.

 

Annual production of fiberglass yarn in China from 2001 to 2016


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   The supply concentration of glass fiber industry is high.From the perspective of region, fiberglass production capacity is mainly distributed in Asia, America and Europe.From the supplier, the world's major from OCV, PPG, JM, boulders, chongqing, China international and taishan fiberglass, capacity proportion reaches 60%, and domestic fiberglass provide about 80% by China stone, taishan fiberglass, chongqing, shandong international shares in long beach, glass fiber, sichuan wei bo and six major manufacturers monopoly.

Glass fiber in the domestic application field are mainly concentrated in the construction, electrical and electronic, deliveries, pipes, industrial applications, new energy and environmental protection and other fields, according to the composites using network technology, the proportion were 34%, 21%, 16%, 12%, 10% and 7%, electronics to become the second largest application field of China's glass fiber.One of the key raw materials for electronic application is electron glass fiber yarn.According to the statistics of the prospective industry research institute, the application scale of China's fiberglass in the electronic field increased from 55,000 tons to 1094,000 tons in 2001-2014, and maintained a fast growth rate for many years.

The glass fiber cloth is used as reinforcing material to increase the strength and insulation in the copper clad plate, accounting for about 25% of the raw material cost of copper clad plate.Glass fiber cloth is made of silica sand and other raw materials in the kiln, and then it is made into glass fiber yarn after being spun into glass fiber by the alloy nozzle, and then it is made of fiberglass textile.Glass fiber cloth industry concentration degree is higher, the six largest suppliers (boulder, OC, PPG, etc.) combined capacity accounted for 70%, used for PCB electronic cloth demand is higher, the main manufacturer or European and us companies but capacity has been shift to the asia-pacific, the production of ultra-thin glass yarn is still concentrated in the European and us companies.

 

The application scale of glass fiber in electronic field in China from 2001 to 2014.

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    3. Epoxy resin


Epoxy resin with good mechanical properties, electric properties, and the stick performance is widely used for manufacturing copper-clad r.p. panel, anti-corrosion coating, powder coating material, in the field of electronic electrical and mechanical manufacturing work plays an important role.China has become the largest producer of epoxy resin in the world. The data shows that the production of epoxy resin in China increased from 680,000 tons in 2010 to 1.4 million tons in 2015, and the annual compound growth rate reached 15.54%.

Different PCB different to the requirement of resin: in general, single/double panel, sandwich plate and HDI using phenolic resin and epoxy resin, and high speed/high frequency main use teflon plate, in recent years popular halogen-free, CCL is using bromine resin of environmentally friendly products.Currently, the mainland and Taiwan suppliers mainly provide phenolic resin and epoxy resin. High-end specialty resins such as BT and PPE are monopolized by the international giants of Japan and Japan.

 

China's epoxy resin production from 2010 to 2015

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   Copper clad in the industry in China, the demand for epoxy resin are mainly rigid sheet, high performance epoxy glass fiber cloth base copper clad (including modification of high performance epoxy resin copper clad), copper clad metal group and three layers model, flexible copper clad laminated addition process method with half cured resin film, etc.According to the statistics, in 2014, all kinds of epoxy resin consumed in the domestic copper-plate industry accounted for 30.6% of the total consumption, and the use proportion was the first.

 

 

 

                                   China's consumer market for epoxy resin in 2014.

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Requirements: PCB industry.


Copper clad downstream of the industry for the PCB industry, because copper clad industry capacity is concentrated, the 2016 global rigid sheet according to the value of the top ten companies market share of total accounted for 74%, and the top ten PCB company market share of 53%.Therefore, the copper-clad industry is more bargaining power than the downstream PCB industry, and copper-clad enterprises can usually transmit the upstream cost pressure to the downstream.

 

1. PCB has a significant periodicity and is currently in a growth state.


PCB in downstream products application field widely, involved in many industries, the cyclical industry is not affected by a single industry, mainly with the macro economy and the overall development of electronic information industry.According to the research, from the international market, the cycle of global PCB market is consistent with that of electronic products and semiconductor market.The PCB industry has seen only two low points since 2000, the impact of the Internet bubble in 2000-2002, the decline in PCB's global output and the impact of the global financial crisis in 2008.

                                  Global and Chinese PCB production changes from 2000 to 2016.

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   Compared with the global PCB market, China's market growth rate is significantly higher than the global overall level, and the impact is also relatively small. In 2009, the output value declined only slightly, and the growth was resumed in 2010.It is expected that our country will continue to grow at a higher rate than the global level, which will be the main reason for the increase of the demand for copper clad plates in China.   According to the statistics, the global PCB overall size is expected to reach us $64.2 billion in 2017, and the output value of 2022 will increase to us $75.6 billion, and the compound annual growth rate is expected to be 3.32%.According to this forecast, China's PCB output will reach us $28.972 billion in 2017, accounting for 44.13% of global output.

                                      2017-2022 global PCB production forecast.

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   2. PCB industry transferred to Asia.


Since the 1950s, the PCB industry has experienced the transition from "euro-american domination" to "Asian dominance", with Asia mainly centered on China.From 2008 to 2016, the americas, Europe and Japan in the PCB production decreased gradually in the world, the PCB production value accounted for the proportion of global respectively by 9.30%, 5.65% and 21.12% in 2008 fell to 5.08%, 3.78% and 10.44% in 2015, Japan's largest decline.On the contrary, PCB production in mainland China has increased year by year, accounting for 47.36% in 2015, and PCB output in other parts of Asia has also increased slightly.

                            2008-2016 global PCB industry output area distribution changes. 

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   3. The rapid development of the electronic information industry and the rapid development of PCB demand in the downstream of copperplate.


Printed circuit board is on the various types of copper clad, form the point of connection between a predetermined design and printing PCB components, its main function is to make all kinds of electronic components form order circuit connection and the vast majority of electronic devices and the product must be equipped with, known as the "mother of the electronic products, the main application areas are: computers, communications equipment, consumer electronics, automotive electronics, industrial control, medical equipment, aerospace and other industries.

The rapid development of the downstream electronic information industry will lead to the development of the PCB industry. The electronic information industry in China has maintained a continuous and rapid development trend.According to the forecast, China's electronic information manufacturing industry realized revenue of 13.8 trillion yuan in the first half of 2017, an increase of over 14% year on year.With the promotion of national policies, economic transformation and other factors, China's electronic information industry is expected to continue to develop rapidly, thus bringing a broad market development space to the PCB industry chain.

From 2001 to present, the data comparison shows that the growth rate of PCB industry in China has the same relationship with industrial added value (macroeconomics).As can be seen from the trend of the industrial added value in 2017, is currently in the early stages of the upward trend, before each round up or down cycle fluctuations are about 30% of the growth of led PCB, and the PCB growth fluctuation have just started up.

Shenzhen Found Printed Circuit Board Co, Ltd, an electronics manufacturing service provider and printed circuit board manufacturer, offers custom-designed electronics manufacturing and MID-sized OEMs and ODMs. A wide range of end markets that include PCB and PCBAs for Automotive, Communications, Computing, Consumer, Industrial, and Healthcare All these PCB and PCBAs are being exported to foreign markets, mainly to eastern Europe market. Shenzhen Found is dedicated to being a long-term PCB and PCBAs partner with our customers to achieve quality and cost optimization.  

 

A professional PCB& PCBA design, product, sale manufacturer.Specially dedicate to Security, Industrial Automation, Medical, Household Appliance PCBA and Electrics products finished assembly. Currently with 100 workforce and covering 5, 000 square meters area, our products exported worldwide including North American, & South American, European Countries and Asia, etc.