PCB Industry Chain Development In Q4

- Oct 07, 2018-

According to the upstream and downstream of the industrial chain, it can be divided into raw materials - copper clad plate - printed circuit board - electronic products application, the relationship is simply expressed as: 

glass fiber cloth: glass fiber cloth is one raw materials for copper clad plate, made of glass fiber yarn textile, accounting for about 40%(thick plate) and 25%(thin plate) of the copper clad plate cost. Glass fiber yarn is calcined into liquid state by silicon sand and other raw materials in the kiln. It is pulled into extremely fine glass fiber through a very small alloy nozzle, and then hundreds of glass fibers are twisted into glass fiber yarn.Kiln construction investment is huge, generally need hundreds of millions of funds, and once start must be 24 hours non-stop production, enter and exit cost is huge. Glass fiber cloth manufacturing and weaving enterprises are similar, can control the speed to control the production capacity and quality, and the specification is relatively single and stable, since the second world war, almost no major changes in the specification. Unlike CCL, the price of fiberglass cloth is most affected by the relationship between supply and demand. In recent years, the price of fiberglass cloth fluctuates between us$0.50 and us$1.00/m.Taiwan and China account for about 70 per cent of global production capacity.

Copper foil: copper foil is the raw material that accounts for the largest proportion of the cost of copper clad plate, accounting for about 30%(thick plate) and 50%(thin plate) of the cost of copper clad plate, so the price rise of copper foil is the main driving force of the price rise of copper clad plate. The price of copper foil is closely reflected in the price change of copper, but the bargaining power is weak. Recently, with the continuous rise of copper price, copper foil manufacturers are in a difficult situation. Many enterprises are forced to close down or be merged. Even if copper clad plate manufacturers accept copper foil price rise copper foil manufacturers are still in a general loss. As a result of the price gap, the first quarter of 2016 is likely to see another wave of price rises, which may drive CCL prices up.