CCL and PCB price expected to increase

PCB industry total output is stable in China, there are niche opportunities in auto PCB market. New energy automotive batteries BMS are based on PCB hardware, currently each luxury car use about 2-3㎡ PCB, each new energy vehicles use about 2-2.5㎡ PCB.

Automotive electronics and new energy vehicles enhanced the rate of sustained growth driven by vehicle PCB demand. Taiwan vehicle PCB leader manufacturers' shares grow up fast this year.

In addition, PCB production supply capacity is stable in short-term. PCB belong to the larger energy consuming industry, by stricter environmental protection impact, China set up very stringent environmental requirements to newly opened domestic PCB factory. Professional analysis, along with the continuing shortage of supply of raw materials and continued growth of downstream market demand, PCB manufacturers is prone to raise prices, profitability is expected to improve.

In aspect of CCL plant, copper price increases lead CCL plant switch additional cost to PCB manufacturers, CCL prices are expected to continue to rise. According to data OF Prismark Partners LLC, Kingboard, Shengyi and Nanya's market share are 14%, 11%, 11% in China.

CCL major manufacturers Kingboard and Shengyi increased about 8-10% price in July and August. According to professional analysis, the impact of CCL prices raise which caused by copper prices increase will continue to last for a long time, is expected to exceed expectations.