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The Impact of PCB Raw Material Increases

2021-03-19  ALLPCB TEAM
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PCB price increases, the main reason is upstream, and the driving factor is downstream!



Upstream factors:


First of all, the skyrocketing of PCB materials has made PCB prices soar.

Copper clad laminate is the mian raw material of PCB, and it is also the most cost-proportioned PCB raw material. It is made into a printed circuit board after etching, electroplating, and multi-layer board pressing.


                                                                                                   [Copper Price Trend Chart]


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The rise in the price of copper clad laminates is due to the rise in raw material prices. The prices of raw materials such as copper foil, epoxy resin, and fiberglass cloth have been rising. The rise in raw materials was mainly due to the impact of the epidemic and the decline in production capacity. With the recent increase in domestic demand, foreign orders have improved, inventory has declined compared with the previous period, and market prices have gradually increased.



                                                                                  [ Epoxy Resin Price Trend chart ]


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From above picture we know that the price of epoxy resin is rising from 16,000rmb per ton to 28,000rmb per ton.


Downstream factors:


The epidemic has had a huge impact on the global economy. The country has formulated a series of measures to stimulate economic recovery, such as speeding up the construction of new infrastructure such as 5G base stations and data centers.


Driven by market demand for 5G base stations, mobile communications, automotive electronics, smart manufacturing, and the Internet of Things, China's copper clad laminate industry is gradually upgrading to high frequency, high speed, high thermal conductivity, and high reliability. Under the influence of the expansion of the new economic model, the market space of the copper clad laminate industry is rapidly expanding.




Sum up:


All in all, rising prices of raw materials and demand have caused the price of copper clad laminates to rise, and the price of PCB has to be adjusted upwards.


In addition, from the perspective of both supply and demand, supply is in short supply and demand is strong, and price increases will continue for some time.


In the context of substantial increase in the price of sheet metal and shortage of supply, in order to protect the interests of our customers, ALLPCB PCB price has been maintained at a relatively low level compared with other companies in the industry.


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