Material price escalation thrives PCB industry chain?
Prices up as scrambling for copper and materials begins
The price of upstream materials of the PCB industry has been escalating over the last year, particularly the copper price, which has surprised people as the escalation soared. In addition to “copper,” the price of “glass yarn,” and “epoxy” escalated due to undersupply.
Copper is the most fundamental and essential part of PCB making, whether they are single-layered or multilayered boards, copper consumption is surprisingly huge. From mid-2020 to the present day, the copper price has been escalating from US$5,200/MT to US$10,000/MT, and was once up to US$10,500/MT, a historical high.
Observations show that the copper price escalated for the following reasons:：
- Copper demand escalates from the thriving development of electric vehicles (EV) in response to the international environmental protection initiatives: According to Seeking Alpha, an investment website, the average copper consumption per traditional vehicle is about 20kg, while it is 75kg per EV.
- Copper demand escalates in all industries during the global economic recovery after the launch of COVID-19 vaccines.
- The copper price soared when the Australian copper export dropped after the China–Australia relationship deteriorated.
- The price of copper and other metals also rose when China engaged in massive infrastructure construction.
- The copper price continues to rise alongside the undersupply of raw materials. Enterprises increase copper purchases for fear of copper shortages, spurring copper price escalation.