The international commercial copper price fell to US$5,822 per metric ton in May, reaching the second lowest copper price this year. This has additionally resulted in the PCB industry to await the demonstration of copper demand trends and retain a conservative view on the inventory preparation of copper in the second half of this year.

 

    From the fourth quarter in 2018 to the first quarter in 2019, the PCB upstream raw material industry has shown an apparent decline in the willingness to stock materials for customers and the revenue has also been inadequate. In the first quarter in 2019, the CCL plants revenue’s (including EMC, ITEQ, and TUC) have dropped in comparison to revenues in the first quarter in 2018, indicating that PCB factories are not willing to restock for the upstream industry.

 

    While analyzing the changes in the PCB upstream raw material market, the Directors of large PCB factories noted that the continuous fall of the international copper price has prompted the CCL and PCB factories’ unwillingness to accumulate inventory, besides the effects of uncertainty caused by the US-China trade war. It is speculated that more serious impacts will occur by June.

 

    This decline in the international copper price additionally represents two significant aspects. Firstly, the global economic decline is resulting in a decrease in infrastructure construction and cable-laying demands. Secondly, it reflects a diminished demand for copper foils and copper foil substrates from the PCB factories and a lack of kinetic energy in the overall PCB industry.

 

    Furthermore, the impact of the copper price decline is also evident in the PCB upstream fiberglass industry. For instance, the orders for electronic grade fiberglass clothes from Fulltech were weakened in May. The electronics market has also been unfavorable since the second half of 2018. Fulltech has consequently pre-prepared to sign a long-term supply agreement with European customers on industrial grade fiberglass yarns to ensure steady shipments and, thus, profitable operations under these adverse conditions. 

 

    The deterioration of the US-China trading relationship has additionally caused a rise in market improbability. Although the PCB industry has responded cautiously to market changes and has remained optimistic about future prospects, demand trends are still unfavorable. To maintain the business in the second half of 2019, the CCL and PCB makers are rescheduling their capacity utilization rates. Therefore, the trend of price-cutting in order to compete for orders is expected, as the trend of international copper price decline is an important indicator of the economy. (News Source: anue.com)