Copper-clad Prices Will Rise Again in The Third Quarter

According to media reports, in recent years, the domestic epoxy resin market is roaring ahead again, the mainstream price is close to 34,000 yuan/ton, which undoubtedly makes downstream copper-clad manufacturers again under pressure. Industry insiders expect that in the face of epoxy resin price pressure, copper-clad manufacturers will generally be transferred to the downstream, in the context of supply and demand, the relevant manufacturers raise prices higher than the increase in raw material prices

The recent price increase of epoxy resin is mainly affected by the sharp increase in the prices of raw materials bisphenol A and epichlorohydrin. Epoxy resin is the main raw material of copper-clad sheets, accounting for about 25%6-30% of the cost, its price trend directly affects the production cost of copper-clad sheets. As early as March this year, because of upstream epoxy resin, copper foil, and other price increases, copper-clad plate manufacturers have raised prices, some manufacturers even raised prices twice a month. Big factories in the industry increased their quotations by more than 10% in the second quarter, close to an all-time high. Now we have orders for copper cladding until the end of the year, and the lead time for orders is very long, now it's basically 30-45 days. The high prosperity of new energy vehicles drives the demand for copper foil to increase, leading to a large number of copper foil suppliers shifting the focus of production to lithium copper foil, resulting in a tight situation of copper cladding supply.

On August 14, 2021, Shengyi Technology disclosed in the report, the company achieved total operating revenue of 9.83 billion yuan in the first half of 2021, up 42.9% year on year; The net profit was 1.41 billion yuan, up 71.3% year on year; Earnings per share was 0.62 yuan. From the perspective of business structure, "copper-clad and related products" is the main source of business income. Specifically, the operating revenue of "zero copper sheet and related products" was 7.94 billion yuan, accounting for 83% of the revenue, and the gross margin was 29.3%

According to Shengyi Technology, in the first half of the year, the copper cladding market has grown rapidly. The company has grasped the market opportunity, adjusted the product structure in time, and made full use of the new production capacity. The selling prices of all kinds of copper cladding products have increased to different degrees compared with the same period of last year.

On August 4, Nanya New Material released its semi-annual report. The company achieved an operating income of 1.993 billion yuan in the first half-year, up 119% year on year; Net profit was 220 million yuan, up 229% year on year.

In the first half of this year, South Asia new material copper clad sheet and adhesive sheet realized the revenue of RMB 1,599 million and RMB 369 million respectively, and the gross profit rate reached 18.33% and 25.14% respectively. The gross profit rate of the copper-clad sheet increased significantly compared with 14.94% and 11.9% in 2019 and 2020.

On August 12, Hua Zhengxin Material released the 2021 semi-annual report, which showed that the operating revenue in the first half of the year was 1.709 billion yuan, up 80.37% year on year; Net profit was 122 million yuan, up 109% year on year; Net profit excluding non-recurring gains and losses was 115 million yuan, up 143.06% year on year

On August 10, Chaohua Technology released its 2021 semi-annual report, showing that its net profit in the first half of the year was 73.58 million yuan, turning a loss into a profit; In the first half of the year, the operating revenue was 1.197 billion yuan, up 125.05% year on year; Net profit excluding non-recurring gains and losses in the first half of the year was 91.22 million yuan, up 543.65% year on year.

In addition, ultrasonic electronics recently said on the interactive platform for investors, the company's PCB and copper-clad business overall orders are full; Nanya new material also pointed out that the company order condition is good, the production line is in full production state.

With the growing market demand for mid - and high-end PCB products such as multilayer boards, HDI boards and IC carriers, the market space for copper cladding manufacturers has been further opened. Superimposed downstream consumer electronics, new energy vehicles, and other fields of high demand, copper-clad industry volume, and price rise trend have been very clear.

Professional analysis, the "core" in the first half of the year affects the shipment of many products, equivalent to the demand was delayed to the second half of the year, coupled with the sales of new energy vehicles continue to grow, the construction of 5G base stations in the second half of the year must also make efforts, can be sure that the second half of the coppers' industry will focus on the outbreak.