Impact of CNY Devaluation on China PCB industry

CNY Devaluation, the most direct impact on the China PCB industry is the import and export trade. In recent years, with the increase of new domestic PCB manufacturing equipment delivery, imported PCB equipment from foreign land percentage has declined in China PCB industry, but for some high specification materials and equipment, China PCB makers still rely on imports, Devaluation will increase the purchase cost of imports for PCB enterprises, but will also stimulate the export of downstream products from domestic PCB equipment manufacturers.
In recent years, conflicts of oversupply at PCB market is becoming increasingly apparent, coupled with the recent weak market conditions, in the case of devaluation, the purchasing power of imported materials will decrease accordingly.
Because the CNY devaluation, which has a more significant impact on the recent sources of imports, which increase the cost of imports as well as business-to-risk rate on late orders, so that traders order expectations of future products will be reduced.
Furthermore, due to increased cost of imported supply, the imported products’ competitiveness in the domestic market will be weakened, will cause downstream users to reduce demand for imported raw materials, and seek alternative domestic raw materials, thereby strengthening the price competitiveness of domestic PCB material. This is good for domestic PCB market performance in China.
For the Export-oriented enterprises, devaluation is a role of fueling. Because of the small domestic PCB raw material export percentage, currently receive little effect by the RMB devaluation. But in general, but also increase the economic benefits brought positive results. On the other hand, also stimulated downstream PCB products exporting, and accordingly also increased demand for raw materials on certain level.
Overall speaking, CNY devaluation, brings a certain degree of short-term impact on the import of PCB industry, will result difficulty in sales of imported materials. But as there are adequate domestic supplies, the China PCB industry enterprises should enhance their competitiveness, seize the opportunity to promote the export growth.