How To Deal With The Rise Of The Quantity And Price Of Passive Components In China's Electronic Manufacturing Enterprises

- Jan 26, 2018 -

The price increase of ceramic capacitors such as MLCC, aluminum electrolytic capacitors and other raw materials has led to an obvious increase in the prices of resistors and capacitors, and the price increases have been announced one after another by international famous manufacturers in the field of electronic components. In 2018, when the price of MLCC was adjusted again, China Giant, Guangjie, Lizhi, Huaxinke followed. The electronic components price increase storm came. In the upstream ceramic substrate and other materials shortage, industry analysis, components rise has been difficult to resist.

For many component manufacturers, it is necessary to consider how to increase the transaction cost of signed customers. "on the other hand, we need to raise prices from upstream suppliers of materials," said Fu Min, head manager of Shanghai Juge Electric Co., Ltd. The rising price of resistor and other components is related to the trend of raw material market. "the trend of price increase depends on the trend of raw material, the price of resistor will rise and the price of raw material will decline when the price of raw material market goes up." Resistor prices will also fall, "Fu said.

Rising prices of raw materials cause resistance prices to rise, but it is understood that the resistor market for many years of excessive competition, ordinary thick film resistance price at cost, or even lower than the cost price shipped. Especially the 0402 size resistor is especially obvious. The skew of the market competition pattern causes many resistance factories to consider reducing production or closing individual high-cost factories to reduce losses, according to people familiar with the industry. The increase in resistance prices is not high, basically kept around 15%, the increase is significantly lower than the capacitance. Experts believe that the main reason for the price increase should be the rational return of prices. The resistance manufacturers realized that the continued price war had every harm and no benefit, so they rose 15 percent in step to strive for a reasonable profit for each other. Experts predicted that the subsequent resistance would not rise as much as a capacitor in the near future. Even the price increases are slow.

In addition to the rational return of prices, the reporter learned that this price increase storm and the implementation of national environmental protection policies are also related. 2017, the intensity of urban environmental improvement continued to increase. 103 Central Environmental Protection Inspector Letters and visits completed rectification and Reform all 140 Environmental Protection inspectors Letters and visits completed. At the same time, many electronic enterprises or electronic-related enterprises were closed and turned over while the environment was under control. Among them, there are some influential well-known enterprises. On the day of the shutdown, China Giant announced that because the demand for orders was far greater than the capacity, the whole series of resistors stopped receiving orders. "there is some relationship between the national environmental protection policy and the rising prices of components," Dai Yun, marketing manager of Shanghai Kela Electronics Co., Ltd., told the China Electronics News.

In addition to some external factors pushing the price up, the internal factors of component manufacturers also played a role, said Deng Hua, marketing manager of Shenzhen Guohua Shun Electronics Co., Ltd. Although the rise of raw materials is a direct factor, but internal costs are also a reason. "the device factory itself needs a certain amount of capital for personnel management, small manufacturers have low costs, but still have to pay a certain amount of management staff." On the other hand, the enterprises also have to face the operating costs, the operation costs of large companies are higher, but the rate of waste products is low. "small companies are relatively tall," Deng Hua said.

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