Upstream PCB Plate Price Rises To Pull Back LED Will Be Full Price Rise?

- Aug 28, 2018-

Environmental protection and raw materials double pressure, PCB factory reluctantly with the rise

The importance of PCB to electronic products is self-evident, but the serious environmental pollution caused by PCB in the production process cannot be ignored, especially at the moment when ecological and environmental problems are prominent, green environmental protection has been highly valued by the government, and strict production environmental protection standards have been formulated.In order to respond to the government's call and realize the sustainable development of the industry, major PCB manufacturers have made industrial adjustments and improved the production process, which not only directly increases the price of parts and labor cost of products, but also leads to the increase of industrial concentration.

上游PCB板材涨价序幕拉开 LED能否迎来全线涨价潮?

At the same time, raw materials prices also pressure PCB enterprises out of breath.According to the data, the cost of PCB raw materials is about 33%, among which, CCL accounts for 18% ~ 20%, copper foil is the most important raw material for making copper clad boards, accounting for about 30%(thick) and 50%(thin sheet) of the cost of copper clad boards.As the supply of copper foil is in short supply, the price of various raw materials continues to rise. Since the beginning of 2016, the price of PCB standard copper foil has increased by more than 50%. The processing fee of copper foil and the price of effective copper clad sheet are more than 100% and 50% higher than the original average level respectively.

Under the double pressure of environmental protection and price increase of raw materials, many big PCB factories begin to "bow down" and choose price increase one after another.It is learned that from the restrictions in kunshan of jiangsu province at the end of 2017, to the restrictions in zhuhai and Shanghai, and now to the strict inspection in shenzhen, the whole PCB industry will face a new situation after this wave of price increases, and the overall range is expected to be 20-30%.

It can be seen that with the continuous price increase of PCB, some non-competitive enterprises begin to withdraw, and the competition pattern gradually tilts to large factories with bargaining power, environmental protection index and capacity reserve, leading to the increase of industrial concentration.

At present, China's manufacturing industry is in the transition stage from low-end processing to high-value-added manufacturing. Measures such as increasing the price of materials, environmental protection regulation and strengthening the restriction on enterprises' paying taxes in accordance with the law are all powerful measures to eliminate backward production capacity.Although the enterprise has the pain, but for each industry, wants to upgrade, this is inevitable.