Analysis of China's CCL market in the first half of 2022

Analysis of China’s CCL market in the first half of 2022

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Table of Contents


PCB refers to printed circuit board,which is an important electronic component, a support for electronic components, and a carrier for electrical connection of electronic components. The reason why PCB can be used more and more widely is because it has many unique advantages.

For decades, the high density of printed boards can be developed with the improvement of integrated circuit integration and the advancement of mounting technology. Through a series of inspections, tests and aging tests, the PCB can be guaranteed to work reliably for a long time (usage period, generally 20 years).

printed circuit board

For the various performance requirements of the PCB (electrical, physical, chemical, mechanical, etc.), the printed board design can be realized through design standardization and standardization, with short time and high efficiency. With modern management, standardization, scale (quantification), automation and other production can be carried out to ensure the consistency of product quality.

Copper clad laminate—also known as base material. The reinforcing material is dipped in resin, one or both sides are covered with copper foil, and a plate-like material formed by hot pressing is called a copper-clad laminate. It is the basic material for making PCB, often called substrate. When it is used in multilayer board production, it is also called core board (CORE).

The copper clad laminate industry has a history of nearly 100 years. The development of CCL began in the early 20th century.


CCL manufacturers’ profits decline

Recently, listed companies in the domestic PCB industry have successively announced their performance in the first half of the year. It is worth noting that in this semi-annual report, the financial data of CCL manufacturers and PCB manufacturers are divided into two levels, and the performance of PCB manufacturers Generally beautiful and different, the net profit of copper clad laminate manufacturers generally declines.

What caused decline?

The reasons for the year-on-year decline in the performance and profits of large CCL manufacturers are mainly due to the sluggish industry market and lower-than-expected demand in the downstream terminal market, resulting in a year-on-year decline in the unit price and sales volume of these companies’ products.

As we all know, commodity futures are going up all the way in 2021, and the prices of many varieties hit record highs last year, which can be described as a rare bull market in commodities for several years. Copper is one of the main raw materials for companies such as copper clad laminates. The skyrocketing futures prices have caused the production costs of such companies to rise sharply.

However, the concentration of the CCL industry is relatively high, the concentration of high-end products is higher, and the CCL manufacturers have stronger bargaining power to the downstream. Last year, the major CCL manufacturers led by Kingboard Laminates raised prices one after another, which not only smoothly reduced the cost Passed on to downstream PCB manufacturers and made a lot of profits in the tide of price increases.

CCL manufacturer

The price of copper

Since 2022,the price copper price has continued to fall. By the end of July, the spot settlement price of LEM copper had dropped to US$7,000/ton, a drop of nearly 30% from the beginning of the year. At the same time, the standard copper foil processing fee has been reduced from a maximum of 24,000 RMB / ton to 20,000 RMB / ton, and the battery-grade copper foil (6 micron) processing fee has also been reduced from 48,000 tons to 40,000 RMB / ton, a decrease of nearly 20%. .

At the same time, since the beginning of the year, the prices of resin and glass fiber cloth have also dropped significantly. From January 2021, the price of resin has started to increase, and the spot price of epoxy resin has risen from 23,000 RMB / ton to a high of 40,000 RMB / ton. 

By the end of 2021, the spot price of epoxy resin will be 38,000 RMB/ton. In 2022, the price of epoxy resin began to gradually fall, and as of the end of July, it was less than 20,000 RMB / ton, down nearly 50% from the beginning of the year.


The price of glass fiber cloth

In terms of glass fiber cloth, in December 2020, the price of electronic yarn exceeded the 10,000 RMB/ton mark and continued to rise, reaching a high of 16,000 RMB/ton in June 2021 and continued until September. Since October 2021, the price of electronic yarn has begun to fall, falling below 10,000 RMB/ton since April 2022, and dropped to 6,000 RMB/ton by the end of July, a decrease of 57.14% from the beginning of the year. Under the influence of various factors, the volume and price of copper clad laminate manufacturers fell.

On the other hand, affected by factors such as the epidemic and sluggish demand for consumer electronics, most companies in the industry chain are also facing problems such as insufficient orders and pressure on performance.

The relevant person in charge of Goldenmax International Technology said that “the price of copper clad laminate products fell in the first half of the year, mainly due to changes in the macro environment, declining demand and fierce market competition. Only through price reduction to sell. Because copper clad laminate is the basic material of electronic circuits, and China is the the world’s largest consumer electronics market, how the situation in the second half of the year still depends on how the macro economy recovers.”


With the development of science and technology, the demand for electronic information processing of various products has gradually increased, new electronic products have been emerging, and consumer electronics and automotive electronics have grown rapidly. Driven by emerging needs such as downstream 5G construction, automotive electronics, and new smart devices for the Internet of Things, the overall market demand for PCBs has shown a structural and rapid growth trend.

As copper plate is the main substrate of PCB, the continuous increase in PCB demand will ensure the prosperity of the copper clad laminate market. And among them, the application of medium and high-end copper clad laminates will be expanded to meet the needs of high-frequency and high-speed communication.

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