Your PCB Procurement Specialists http://alrpcb.com Your PCB Procurement Specialists Sat, 18 Mar 2017 08:37:37 +0000 en-GB hourly 1 https://wordpress.org/?v=5.3 Cost of Foil & Prepreg for PCBs http://alrpcb.com/cost-of-foil-prepreg-for-pcbs/ Sat, 18 Mar 2017 06:34:53 +0000 http://alrpcb.com/?p=823 Let’s take the electronic glass fabric 7628 as a example(1USD=6.6RMB):

The following was published on Linkedin

In recent 10 years history of the lowest price and highest range for RMB3 – RMB10.6 per SQmeter. Since 2016,the prices change as follows:

2016.july. each SQM about 3.2RMB,

2016.oct.,each SQM up to 4.5-5.0RMB,

2016.dec.,each SQM up to 5.5-6.0RMB,

2017.jan. each SQM up to 6.5RMB,

2017.feb.,each SQM up to 7.5RMB,

2017.march,each SQM up to 8.3RMB,

 the electrolytic copper foil:

2016.july,Cuprum about 38000RMB/ton,Processing fees about 22000RMB/ton,total 60000RMB/ton.

2016.oct.,Cuprum about 38000RMB/ton,Processing fees about 50000RMB/ton,total 88000RMB/ton.

2016.dec.,Cuprum about 46000RMB/ton,Processing fees about 58000RMB/ton,total 104000RMB/ton.

2017.jan.,Cuprum about 48000RMB/ton,Processing fees about 60000RMB/ton,total 108000RMB/ton.

2017.feb.,Cuprum about 50000RMB/ton,Processing fees about 60000RMB/ton,total 110000RMB/ton.

2017.march,Cuprum about 46000RMB/ton,Processing fees about 60000RMB/ton,total 108000RMB/ton.

The electrolytic copper foil price, since December. 2016, many manufacturers exceeded 110000 RMB/ ton, and become stable, manufacturers start in struggle, the new production capacity of copper did not come out, the lithium copper foil and conventional electrolytic copper supply pattern is stable, the market demand tension has not been improved, is expected to continue until 2018 or even longer. At present, a lot of copper foil manufacturers cash orders have been arranged single delivery in May.

Recently, the world’s two largest copper mine in Chile and Indonesia Escondida Grasberg projects of production because of the strike interrupted, Peru’s largest copper mine – free port company owned by Mike Melun Cerro V Erde copper mine in early March also held open-ended strike led to about 40 thousand tons per month to suspend production of copper, the strike of the global copper prices pressure increases, the original copper the output is limited, directly affect the electrolytic copper foil high or rising prices.epoxy resin also increased price,but just a little.

CCL code:

According to each CCL manufacturers,but not all same, we take FR-4 1.5 H/H 41*49 is the most commonly used as an example:

using the 0.4KG 0.4*110=44RMB, copper foil;

glass fiber cloth 8 pieces, each piece of cloth 1.2 meters, 1.2 meters *8.3RMB*8 =79.68RMB, the general use of 1.5KG resin, 20RMB *1.5=30RMB, each piece of packaging materials about 2RMB, a total of 153.68RMB. multiPress processing costs 18RMB, with a total cost of RMB171.68. Plus labor, freight and the corresponding tax, reasonable profit, the current FR-4 1.5 H/H 41*49 sales price is between 185-190RMB. If lower than this price, we must think about the quality of this material is guaranteed? Whether it can meet the general electrical performance? After all, the cost is obviously here.

CCL increased prices have affected the PCB industry, and even affect the entire electronics industry, since the first half of the price rise has been maintained, at the same time, the demand is not “up”, the first quarter of 2017 in the electronic market does not seem to be very strong, forming a shortage of material price rising in contradiction with the PCB market not busy season.

As we know,lot of clients still dont believe and accept increased price,if so,it really may face a big risk during production.in the near future,we think the materials price of electronics will continue increase.

The article was first published in LinkedIn by https://www.linkedin.com/in/aken-z-pcb/

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Important Update on Copper foil Shortage http://alrpcb.com/important-update-on-copper-foil-shortage/ Sat, 18 Mar 2017 06:18:07 +0000 http://alrpcb.com/?p=817 Important Information regarding your PCBs – Please Read

 

At ALR, we are normally a little sceptical about news in the PCB industry and rarely believe it necessary to get too excited, preferring to take internal steps to overcome potential challenges, however, this situation is different.

The PCB industry is entering a phase never experienced before. As your purchasing partner, I urge you to consider giving priority to implement a strategy to inoculate against potential implications to your business.

Please speak to us for advice if required.

You may or may not be aware that there is a shortage of PCB laminate. We have been aware of this for some time and the impact is beginning to take effect.

This has come about as a result of shortages of copper foil.

Over the last couple of years, the Chinese government have introduced huge incentives to increase the production of electric vehicles. This market has grown exponentially; Copper foil is used in the batteries for electric vehicles hence the shortage of copper foil for PCB laminates.

Ventec, one of the world’s main suppliers of PCB laminate recently stated:

“The copper foil shortage has resulted in approximately 2.8M sheets per month of Copper clad laminate global material shortage. This is approximately 2X the total rigid demand of USA and Europe combined. We expect the situation to last at least until the middle / end of 2018.”

This shortage will affect all businesses that require PCBs, this is a fact that we cannot ignore.

How this affects PCB manufacturers.

The small to medium PCB manufacturers will find it increasingly difficult to maintain a steady supply of PCB laminate. The larger factories have a much larger power of spend enabling them to reserve stocks of laminate, however, some of the larger factories are still unable to buy what they need.  Many factories are now required to pay for the material on a pro forma basis. Any materials other than 1.6mm 1oz could potentially become rare.

So what does this mean for you?

There are three factors that will come into play and have an effect.

  1. Payment terms: If manufacturers are required to pay for the material in advance, they will not want to offer extended payment terms so you may be required to pay for your order on shorter payment terms that you may be used to.
  2. Price Increases: Due to the supply and demand factors, prices of the laminate are increasing rapidly and by significant percentages. Many manufacturers will be looking to pass on these increases.
  3. Deliveries: In simple terms, if a manufacturer orders X amount of material for a batch of work that incudes your job, and he only gets Y amount of material, the jobs affected by the shortfall won’t be made until his next batch of material arrives. We have already felt the impact on jobs that were originally on a 4 week lead time become 8 weeks lead time.
  4. Types of material: The mainstay of PCB laminate is 1.6mm 1oz. This material will be affected by the potential shortage, but any other materials in different copper weights or different thicknesses may become even harder to obtain.

How long will this last?

We have been informed that the expectation is that this will not ease until at least, towards the end of 2018

What steps would we advise to ensure you are prepared?

Plan, Plan, Plan

Plan well ahead.  Be prepared for longer than usual lead times. Consider ordering stock in advance, buffer stock, schedule. Liaise with your customers regarding their expectations and speak with us about yours.

While the pricing of laminate is rising, consider looking at other options to drive other costs down and potentially equalise the price. Surface finish and Panelisation can have a major impact on cost as can shipping methods from China. We are ideally placed to offer advice on cost down initiatives. By planning ahead you may be able to buy in more boards which will give you a price advantage.

Please contact us at your earliest convenience if you would like to discuss this in more detail.

Warm regards

Jim Rosseter

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