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Processing Fees of Electronic Circuit Copper Foil Trended Lower
Dec 2, 2021 13:52CST
Source:SMM
According to SMM surveys, downstream orders of electronic circuit copper foil have weakened more significantly since November.

SHANGHAI, Dec 2 (SMM) – According to SMM surveys, downstream orders of electronic circuit copper foil have weakened more significantly since November. Due to the decrease in terminal demand, many electronic circuit copper foil factories have recently adjusted their processing fees slightly. The processing fees of copper foil used in regular HDI products (take18μm as an example) dipped around 1.5%. The production schedules at some leading companies are relative high, and these plants raised their processing fees.

SMM believes that the downward trend in the processing fees for electronic circuits copper foil is driven by the following factors.

1. From the second half of last year to the third quarter of this year, the explosive growth of consumer electronics products (home office and entertainment electronics) has made the PCB industry prosperous due to the impact of the pandemic. However, in the third quarter of this year, the consumption of terminal electronic products has peaked and is gradually returning to normal. A copper clad laminate company stated that its downstream electronics orders have declined significantly since September. The number of new orders in November decreased by about 10-15%.

2. In September and October, the nationwide power rationing and production restrictions caused the capacity utilisation rate of electronic circuit copper foil factories to plummet. And downstream orders and corporate manpower took a hit. After the resumption of work and production, the demand weakened further. And most standard foil companies began to see a slight overcapacity.

SMM believes that new orders for electronic circuit copper foil have weakened at the end of the year. But most companies have completed their annual production plans. They are no longer willing to cooperate with customers with billing periods and refrain from cutting prices significantly. The prices will remain firm until the end of the first quarter next year.

The processing fees of electronic circuit copper foil are expected to plunge across the board from the end of the first quarter and the beginning of the second quarter. Taking 18μm regular standard foil as an example, the processing fees are expected to fall to 32,000-35,000 yuan/mt.

copper foil

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