PCB material prices on the rise

Prices for fiber glass yarns and fabrics, key materials for making copper clad laminates (CCL), are set to rise by as much as 15% in January 2011, according to industry sources. The news comes after reports of an anticipated 5-7% growth in copper foil prices for the same month.

Quotes for 7628 size fiber glass fabrics, for instance, are likely to reach US$0.70-0.75/meter in January from the US$0.60-0.63/meter set in October 2010, the sources said. Meanwhile, the price of fiber glass yarn G75 will also climb by about 10%, the sources added.

Copper foil prices will also go up to reflect strengthening copper prices. The price of 0.018mm copper foil, for instance, will likely increase to US$13-13.50 in January from US$12.40-12.80, industry sources were quoted as saying in previous reports.

The sources speculated Nan Ya Plastics will raise its prices by 10% in January, and other CCL producers are expected to follow with plans to grow their prices by 5-10%. The higher material and component costs should put pressure on PCB suppliers, which have begun building up inventory ahead of the Lunar New Year, the sources indicated.

The sources estimated that makers of fiber glass fabrics and yarns including Baotek Industrial Materials, Fulltech Fiber Glass and Glotech Industrial will enjoy double-digit growth sequentially in their December 2010 revenues, while copper foil supplier Co-Tech's revenues are expected to grow 10% from November. Meanwhile, CCL specialists Elite Material (EMC), Taiwan Union Technology (TUC) and Uniplus Electronics will likely report revenue growth of 5-10% on month in December, according to the sources.