[SMM Analysis] years later, Copper foil Market consumption is not good

SMM, March 23 / PRNewswire-FirstCall-Asianet / processing fees for copper foil products rose significantly in 2016. With regard to lithium copper foil, the vigorous promotion of new energy vehicles in China has stimulated the demand for lithium-ion power batteries. at the same time, under the subsidy of new energy vehicles, a large number of small and medium-sized battery enterprises have poured into the market. The boom in the lithium battery market has directly led to a significant increase in the demand for lithium copper foil upstream, resulting in a shortage of lithium copper foil market, so processing fees continue to rise. Copper clad laminate copper foil also has a supply gap, because the profit space of lithium electric copper foil is higher than that of copper clad laminate copper foil, and some copper clad laminate copper foil enterprises convert part or all of their production capacity into lithium electric copper foil, resulting in a reduction in the supply of copper clad laminate copper foil, It is unable to meet downstream production demand and processing fees continue to rise.

Thanks to the increase in processing fees, copper foil enterprises have increased their profit space, and the expansion plan has also followed. In the second half of 2017, expanded production enterprises gradually released new production capacity, resulting in a significant increase in copper foil production. Copper clad laminate copper foil from 2016 in short supply to oversupply, due to the expansion of production capacity, resulting in a reduction in the market share of enterprises, in order to maintain normal sales, enterprises can only reduce processing fees. In addition, according to research companies, in 2017, many small and medium-sized lithium battery plants closed, so that production capacity to lithium copper foil enterprises turned back to copper clad copper foil, but also led to copper clad laminate copper foil processing fees fell. In 2017, lithium copper foil processing fees also saw a pullback. with the rapid expansion of lithium battery companies, many enterprises only pursue production and reduce quality, resulting in excess capacity at the low end, while high-end capacity is still in short supply. 17 years of new energy vehicle subsidies downhill, at the same time, with the intensification of competition, many lithium battery factories closed, lithium copper foil consumption has declined, only some large high-quality lithium copper foil enterprises because of downstream customer stability, processing fees can remain stable. In 2018, subsidies for new energy vehicles will fall further, followed by cost pressures to lithium battery companies. if raw material prices continue to be high, lithium battery companies will face a lot of pressure and the industry reshuffle will be further intensified.

According to SMM research found that years later, copper foil market consumption is still relatively light, and in March and April consumption in previous years has slowly recovered. According to the China Electronic Copper foil Industry Association, the new capacity of copper foil in 2018 is expected to double that of 2017, so copper foil processing fees are expected to continue to fall this year. (SMM Xu Jinqiao)