How is the price trend of copper clad laminates in 2023

[Industry Focus] How is the price trend of copper clad laminates?

Electronic copper foil, epoxy resin and glass fiber cloth are the main raw materials of copper clad laminates, and their price changes affect the production cost and sales price of copper clad laminates. Copper Clad Laminate (CCL) is a plate-shaped material made of petroleum wood pulp paper or glass fiber cloth as a reinforcing material, impregnated with resin, covered with copper foil on one or both sides, and hot-pressed. The three functions of insulation and support are the core materials for making PCBs, accounting for 40% of the material cost. In the first half of 2023, the electronics market will continue to slump, the recovery of downstream demand will not be as good as expected, the raw material end will continue to expand, the contradiction between supply and demand in the market will become prominent, and the prices of copper clad laminates and upstream raw materials will generally show a downward trend.

Proportion of Copper Clad Laminate Raw Materials

1.       Electrolytic copper foil price trend analysis

In the first half of 2023, the market price of electrolytic copper foil continued to decline, and electronic circuit copper foil continued the weak trend last year. Although there was a short-term upward trend after the Spring Festival and processing fees increased, starting from March, electronic circuit copper foil processing fees It showed a steady decline and gradually approached the cost line. Since then, copper foil processing fees have remained low without much change. During this period, copper foil manufacturers were in the mood to increase prices. However, due to the general recovery in demand, the oversupply situation cannot be improved and the copper price continues. Higher prices have led to continued pressure on processing fees. The sales volume and profit of special specifications of copper foil such as high-frequency, high-speed and ultra-thick copper foil are above the industry average. Demand As of the end of June, the mainstream quotation for 18-micron electronic circuit copper foil processing fee is 15,000~18,000 yuan/ton, the mainstream quotation for 35-micron electronic circuit copper foil processing fee is 13,000-17,000 yuan/ton, and the mainstream quotation for 70-micron electronic circuit copper foil processing fee The price is quoted at 15,000~19,000 yuan/ton.

2. Price trend analysis of epoxy resin

In the first half of 2023, the contradiction between supply and demand in the epoxy resin market became prominent, terminal consumption growth was lower than expected, social supply continued to increase, and market prices overall declined. Before the Spring Festival, the downstream stockpiled a small amount of inventory, the order situation improved, and the market price increased. Starting from February, the price of epoxy resin continued to fall. The downstream mainly digested the early inventory. Starting from May, the new order procurement situation showed Generally speaking, the market supply has increased, but the downstream price pressure sentiment is strong. When the supply and demand environment is relatively loose and the supply is slightly greater than the demand, the price center continues to decline. Until mid-June, the market price stabilizes and improves as the demand improves. A slight recovery.

3.Analysis of fiberglass cloth price trends

In the first half of 2023, the overall price of glass fiber series products will drop significantly, and the prices of electronic yarn and glass fiber cloth will continue to decline weakly. After the Spring Festival, the market price of electronic yarn began to decline, and the decline was relatively obvious. At first, manufacturing companies had a strong willingness to raise prices. As the transaction prices of large manufacturers began to decline, small and medium-sized enterprises were forced to reduce prices to protect orders. The monthly decline remained at around 1,000 yuan/ton. ; In April, the cost pressure of manufacturers continued to increase, and the decline in market prices narrowed compared with the previous period. However, due to weak demand and continued price reductions by major manufacturers, the market price of electronic yarn continued the previous downward trend; in May, with the slight decline in demand After the recovery, manufacturing companies have a strong willingness to raise prices, and the transaction prices of most manufacturers have not changed much. Later, with the release of new production capacity, social supply increased, and the price of electronic yarn fell in response, and the decline was smaller than in the previous period; entering June, The prices of electronic yarn and fiberglass cloth increased steadily. Although the actual transaction volume was average, most manufacturers suspended price adjustments and waited to see changes in the market due to their optimistic downstream expectations. As of the end of June, the mainstream quotation of G75 electronic yarn remained at about 7800~7900 yuan/ton, and the mainstream quotation of 7628 electronic cloth remained at about 3.4~3.5 yuan/m

Summary and forecast: In the first half of 2023, the prices of main raw materials for copper-clad laminates have dropped significantly. On the one hand, the terminal consumer electronics market continues to be weak, the performance of the electronics industry is not as good as expected, terminal electronics companies have high finished product inventories, and there is great pressure to destock. The demand for PCB and copper-clad laminates has slowed down, and copper-clad laminate manufacturers just need to purchase raw materials. In the case of insufficient demand, material manufacturers are forced to exchange price for volume to relieve inventory pressure. On the other hand, the production capacity of raw materials represented by copper foil is growing rapidly. Soon, the market supply increased significantly, product homogeneity competition intensified, and price competition became fierce.

At the end of the second quarter, with the slight pick-up in the demand side of copper clad laminates and the strong willingness of upstream manufacturers to raise prices, the price of raw materials stabilized and rose slightly, which also accelerated the replenishment progress of downstream PCB manufacturers in the third quarter. In the second half of the year, with the implementation of various policy measures to expand domestic demand and promote consumption, the consumer electronics market will enter a recovery trend. At that time, the overall demand for copper clad laminates and upstream raw materials will recover steadily, and market prices will rebound from the bottom and enter an upward channel.