Last month, two aluminum substrate manufacturers in the WeChat circle of friends issued a price increase notice.
At present, the application of PCB in the LED industry is mainly in the fields of packaging, power supply, lighting, etc. Especially the rapid growth of LED display demand this year, the growth of COB and other packaging market scales are all contributing to the growth of demand in the PCB market.
As the electronics industry is about to enter the peak season, it directly leads the board manufacturers to have no right to speak when ordering raw materials. At present, raw material prices are changing every day, causing some customers to start panic buying.
With the advent of the peak season, the tension between supply and demand will be more sustainable. It will be difficult to ease the price increase in a short period of time. This year, we should not see the hope of not raising prices or stabilizing prices.
Hu Yong, sales director of Ward Technology, believes that “the price of copper foil is rising, and the price of sheet metal manufacturers is also rising. You are going up, and I am also rising. As a result, the whole industry is going up. The more you buy, the more you buy, which leads to the illusion of out of stock.â€
The PCB is divided into two types, a metal substrate and a glass fiber board, both of which are made of copper foil. Among them, the fiberglass board has been monopolized by several companies, with an increase of 40-45%. The aluminum substrate has not yet been monopolized, so the aluminum substrate material is currently rising by about 15%.
"I believe that the price of aluminum substrates will rise once this year, within 5%, and will not exceed 5%." Hu Yong mentioned.
With the news that the price of substrate materials has risen, customers can only accept price increases and can accept prices of around 10%.
The wave of price hikes has already started, and whether market demand will continue to grow is worthy of attention.
A letter from Hu Yong, Sales Director of Ward Technology, to customers and colleagues
Dear customers:
Hello everyone!
At this moment, I just put down a mobile phone that has one hour of conversation with one of our customer purchasers. To be honest, our communication is a failure. What have we talked about, we will tell you later!
First of all, I have to thank you for your support and love for Ward all the way. Because of your support, we can develop an obscure enterprise to the largest aluminum-based circuit board company in the country. It is because of your support that let us Successfully research and develop fully automatic aluminum substrate production line, and achieve industry-leading cost performance.
From the moment you choose Ward to serve you, Ward has built a close relationship with you. We are a community of destiny, so-called hello, I am good, everyone! In order to meet your requirements, we We dare not take it lightly at work. We have always adhered to the service foundation concept of “high-scale, high-automation, high-scientific, high-efficiencyâ€. Everything starts from management, finds management to improve quality, finds management to reduce costs, and finds management Innovation, looking for management to achieve performance, we can say that we invest in equipment, management investment is not awkward. For example, last year's third-party management consulting fee reached 2 million yuan, the vision to become the world's leading PCB supplier, but also to keep up with the "big brother" your pace.
I believe that you are more clear than me. The LED industry has long been a traditional product that has been heavily subsidized by the country and the sunrise industry in the eyes of everyone. Now it is a traditional product that sells cabbage prices and slaps white hearts. Since the establishment of the factory in 2009, we have followed the LEDs with the ups and downs. In the past few years, we have witnessed the technological changes in the industry. We have also witnessed the joining of many industry friends to witness the glamour of the past stores to the industry. Now, the world of LED has been formed. Our customers also have a lot of action, Mulinsen listed and acquired Osram's lighting business, Ou Pu listed, Sanxiong ready to go public, Foshan Lighting, Sunshine Lighting, Lidaxin, Debang Lighting are the forefront of the industry. I wish everyone is getting better and better, and the company is booming.
Recently, the word "up" has exploded the headlines of the circle of friends and the major media in the industry, especially the PCB. This may be more demanding and worthy of attention than individual mergers and acquisitions. Because, the rise is the only profit for the lamps and lanterns. For the suppliers, the rise is a choice between life and death. Because of the rise, fear of no customers, and finally die; no rise, no profit, even serious losses. Finally, it is dead.
Why is it rising? I am not here for long analysis. In short, the large demand for lithium copper foil leads to shortage and price increase of copper foil, the main raw material of CCL. At present, the global copper foil production capacity is designed at 40,150 tons/month, which is slightly lower than the downstream total demand of 43,050 tons/month. In the downstream application of copper foil, copper foil from CCL is the largest demand, about 26,000 tons / month, PCB + FPC + FCCL copper demand is about 8000 tons / month. Copper foil manufacturers in the case of constant production capacity, after the conversion of lithium battery copper foil (currently planned to transfer lithium total 8600 tons / month), will lead to a sharp decline in PCB copper foil supply, unable to meet downstream CCL and PCB production needs. It is estimated that by 2018, the demand for copper foil for lithium battery will increase by 200%-300%, while the expansion rate of copper foil capacity will be 4%-5%, which will not meet the demand for copper foil in lithium battery industry and peripheral products, and will further lead to other industries. In particular, CCL's copper foil supply and demand imbalance, which in turn caused the corresponding copper foil supply price to rise. The copper foil price increase we mentioned here is actually not copper, the copper foil processing fee has risen, and the lithium foil copper foil processing fee is currently 78 yuan. / kg, PCB copper foil in order to get the goods, from the original price mentioned 76 yuan / kg, up 30%. In addition, PCB original substrate copper clad suppliers suppliers have a monopolistic competitive landscape, which makes it have a unique pricing and cost transmission mechanism.
Today, the main supplier of CCL, Jianye KB, carries out the Nth price hike. I am still in the circle of friends this morning. Our main products are provided by our own material brand factory, Bergett, and the aluminum substrate is less affected.
Based on the current crazy mode, our company officially brought out the price increase notice on September 23, bringing confidence and hope to the peers. Why do you say this? There is no price increase. I believe that no boss has been able to sleep well since September. . Because, the rise seems to be dead, not rising and dead, no one takes the lead. In this way, there is hope, and some people take the lead and can rise together. Don't worry, I am going up, he doesn't go up. As soon as the news came out, the message circle of friends got more than 300 likes and more than 100 discussions. Then, other representative companies also posted notices of price increases.
Although the notice is a notice, the communication with each other is not going to be so smooth. But fortunately, thank you for the last
Support and understanding, the last letter received on the morning of October 1st agreed to the price increase mail, except for the companies that need to re-tender, all agreed to raise the price. However, this matter has come to comment so far. Half of our approach is good and half is bad. We must know how much courage and risk and sin will be dare to do. In short, I have become a sinner. No matter what, I think it is moral to do so. In order to maintain the healthy development of the industry, we can survive by ourselves. Therefore, we must do this!
This is the sinner who has become a "celebrity". Every day, there are different business owners or managers calling. What should I do? To be honest, I don't want to be a "celebrity". I want to know how many celebrities are behind. People are reviled.
These days, I visited some companies, in addition to how hard or how bitter. Of course, it is not a bitterness for PCB companies. Many companies say that they have not made any money in the past two years. Customers also make some scale and brand customers, which means they can't make money. In fact, we are the same as them, and we have not made any money. Next, let me say a few real data:
Our logistics costs: 150,000 or so, express delivery fee: 20,000 or so, mold test stand: 250,000 or so, film online version: 100,000 or so, free sample one month: cost 5-8 million. You will not give money to these money customers. So let's count: For example, our company produces 130,000 square meters a month, and the cost per square is 4.6 yuan!
Everyone knows that now a square profit is about 5 yuan, and the above expenses will definitely not be earned! With the payment method of industry suppliers, it is worse for circuit board companies to increase their prices. Originally received the customer monthly knot, to the supplier monthly. Now it's not as simple as cash, it's not as simple as prepaying a part of the money. It's prepaid in full line, and it's queued up. If you don't have it, you can only say that your strength is not good. Some queues are queued. Order 10,000 to 2,000. Well done.
Because CCL accounts for more than 70% of the cost of a single-layer PCB, it means that the company's financial pressure suddenly increases by 70%. The business of doing 20 million a month is generally much more than 20 million in cash. It depends on how customers make the payment. Therefore, we have recently put forward four requirements: 1. A small order of less than 800 yuan will be charged at a uniform rate of 800 yuan, which is higher than the actual calculation; 2. If the utilization rate is less than 90%, each additional point will be increased by 1 yuan; All free sample courier fees will be changed from the original company to the customer to pay; 4, shorten the account period. The above four points, in the eyes of the customer is too much, the customer thought: the price has also risen, but also to mention these requirements, it is simply a step. You don't know, the price increase is the actual price increase of the material itself; you don't know, now we have to pay the supplier in advance to ship the goods, you don't even know, the free one at the beginning of the cooperation, free proofing, free Open the mold, open the test rack for free, free of engineering fees, package delivery, etc., and there is no profit margin for the batch that only makes you. You said that other suppliers are also like this, just because other The same is true for suppliers, so everyone is suffering, because you said that we have the quantity for you, we have to endure anything. No profit, how to save a little bit of time from the factory, the management team changed a batch and a batch, thinking that you can save points, in fact, who manages are similar. Sometimes, when we see that we are happy with customers, we drink and eat meat. You don’t know, many bosses are at home, and they have a bowl of dumplings and a bowl of noodles in the middle of dinner. If the stomach is not good, they will go to the stalls. Bowl of porridge...
Oh, it’s tears to say more!
In the past few days, I have received many new customers to find us, and I have to quote! Don't guess, it is definitely your supplier's price increase, looking for whether there is no increase. I am here to appeal to the supplier to raise the price reasonably, you will promise it!
Write some words today, not for anything else. One is to let everyone know the status quo of our industry; the other is to support everyone to understand our hard-working circuit board companies.
I believe that accepting our price increase is a conscience enterprise, and our price increase enterprise is also a conscience enterprise. In order to be a conscience enterprise, there is a "slapstick" that the customer has been struggling to communicate for an hour at the beginning of the article, and what is not a brand, 7 or not, there is a risk of explosion.
In the past, we walked together, because with you, we are more confident; because of you, we dare to challenge; because of you, we will win a good reputation; because of you, we can be in the same industry Stand out from the crowd and thrive. In the years to come, we sincerely hope that we can continue to work with you, help each other, support each other's understanding and trust, continue to work hard for the initial dream, and continue to struggle for LED to change the world.
Finally, I wish you good health and happiness!
Hu Yong. Zhuhai 10.17
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