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PCB Industrial alarm equipment material out of stock

o-leading.com o-leading.com 2017-04-13 11:30:35
"Substrate Like - PCB" (Abb. SLP)  and vehicle-mounted board will be the biggest competitive point in 2017

  In 2016,the shortage of CCL copper clad and copper foil material impelled its price soared, throughout the year copper foil price increased more than 30% last year, due to the favorable factors, according to market estimates, domestic the largest raw material supplier KB in 2016 net profit will be HKD$3.8 billion, compared with the previous year's HKD$1.3 billion,it’s grown by more than 200%, at the same time, Taiwan's Co-tech Development’s cumulative revenue reached 5.365 billion new Taiwan dollars in 2016 , compared with the 4.265 billion new Taiwan dollars in the previous year,it’s increased by 25.79%, particularly in December 2016 the revenue reached $550 million new Taiwan dollars, nearly hit a record high, over the past year its share price has risen to the current t 43.35  new Taiwan dollars per share (share price at the end of December 2016 is less than 35 yuan), the most recent year the shares rose even reached 382.87%.

Co-tech Development Monthly revenue data in 2016

The trend that PCB industry is affected by copper prices is going to ease
Processing fees on PCB manufacturing will continue to rise

  Investigate its shortage reason, it mainly has the following aspects: on the one hand, lies in the automotive electronics market, before the copper foil industry application is in the PCB only, but added electric lithium battery application last year, while copper foil expansion needs not only the heavy capital, at the same time also needs equipment,but equipment factory’s supply speed is very slow, and then expansion speed is relatively slow which will need a year and a half to two years, strong market demand results in the production are in short supply; the second is in the smartphone market, last year the smartphone market developed much more better than expected, such as domestic smartphone brand, Huawei, OPPO and Vivo ,their shipments were with a good situation, Huawei nearly sold out 140 million smart phones full-year , OPPO sold out also nearly 100 million units, vivo sold out also nearly 80 million units, if included with Mimu and Gionee, the smart phones shipping QTY for top five domestic smart phone manufacturers in total can reached 420 million or so, the demand for PCB greatly increased; In addition, last year the electronic copper foil manufacturer transferred to lithium electricity copper foil production and compressed capacity ,at the same time downstream demand for PCB had been back to improve , which caused the supply shortages and rising prices.

  But according to the Co-tech Development , in the first quarter of 2017 their price affected by copper price fluctuations is flat, but contract fee will continue rising slightly compared with December last year, at the same time, the processing fee increase didn’t reduce the related customers strongly will to increase the stocks, which make its February order still very adequately, the Co-tech Development’s limited capacity can not fully meet the client's demand, can only assign shipments. From the first quarter of last year,because a large number of copper foil used for the production of new energy car battery, the gap of supply shortage for global copper foil used for pcb will continue till today, forl copper foil market supply and demand of the current situation,Co-tech Development points out that at present due to the off-season of new energy vehicle production, the copper foil production will come back to PCB copper foil market, but it can only relieve a small part demand, market is still in short supply.

   Processing charge rise is one of the main reasons for copper foil prices increase, Co-tech Development had announced last December copper foil contract fees will continue rising. According to Co-tech Development statistics, the contract fees in 2016 had risen by 15% to 20%, the increase in the third quarter was more than 5%, the fourth quarter and this year 2017 will continue bullishly. Processing fee, as we have learned, copper foil lithium electricity processing fee in 2007 ~ 2008 is 70000~ 80000 yuan/ton, but in 2013 ~ 2014, dropped to 30000 yuan/ton, current as lithium batteries car demand increase,  copper foil processing fee has increased to 40000 yuan/ton.

    From the present point of view, the share price of PCB upstream raw material stocks recent performance is very strong, since copper foil and CCL and glass fiber yarn& glass fiber cloth all hot, raise detonated mainly is copper foil processing fee  increased three times in the second half of last year.

    Till now, the PCB upstream raw material stock include copper foil, CCL manufacturer  shares have shown a wave of gains, among them, the most fierce  is Elite Material Co., Ltd. &Co-Tech,  the Co-Tech’s share rose reached 382.87% in the last whole year which mentioned in the previous article, and Elite Material Co., Ltd.’s share rose reached 107.32% in the past year, the recent half year reached 48.56%, entered since 2017,only more than one month share rose reached 32.22%. The Co-Tech’s share rose reached 12.05% in 2017.

The trend of stock prices of Co-Tech

The trend of stock prices of Elite Material Co., Ltd

   In addition to copper foil and CCL raise price and out of stock, currently this also appears on part of the glass fiber products in the market, such as G75 yarn and the 7628 thick cloth . Take Taiwan Fulltech as an example, which main product is glass fiber yarn and glass fiber cloth, but the  G75 yarn and 7628 thick cloth is out of stock in the market,  the qty of customers to increase the purchase price is also increasing. There will be 1.6 billion new Taiwan dollars capital spending in 2017, mainly used in Dongguan to set up the production of high - grade glass fiber cloth factory, The first phase of the planning is to set 180 units.

  In spite of this, in the eye of people in this industry, the whole market to fill the inventory of the client is currently an important focus of buying, And this strength in PCB  industry will enter the off-season in the second quarter, after the Spring Festival in February for buying raw materials can sustained, is the observation point.