Extremely High Concentration Of Copper Clad Laminate Industry
Copper-clad laminates are mainly composed of copper foil, fiberglass cloth and resin, and the copper-clad laminate industry has a relatively high concentration, especially there are few mid-to-high-end copper-clad laminate suppliers. It is above 75%, and the market share of the top ten global PCB companies is about 53%. The market share of the top five copper clad laminate manufacturers in China is about 51.39%. The bargaining power is stronger, and the price increases of raw materials such as copper foil, fiberglass cloth and resin can be better transmitted to downstream PCB manufacturers.
The recent rise in copper prices will be transmitted to the cost end of copper clad laminates and copper foils. There are high requirements for copper foil quality in the mid-to-high-end PCB manufacturing, and because the equipment for producing high-quality copper foil, especially key components, needs to be imported and has a long cycle, the expansion of copper foil capacity is not only a large investment and the average cycle is at least one year Above, the capacity growth capacity is slow. Copper prices have entered a price reduction cycle since the second half of 2018, but there has been a significant rebound since the beginning of the year. The rise in copper prices will be transmitted to the cost end of copper clad laminates and copper foils.
The market concentration of the glass fiber industry is relatively high, and cyclical cooling and environmentally-friendly production restrictions make supply tight. Glass fiber yarn is calcined into a liquid state in a kiln by using raw materials such as silica sand. It is drawn into ultra-fine glass fiber through a very small alloy nozzle, and then hundreds of glass fibers are entangled into a glass fiber yarn. The investment in kiln construction is huge. A kiln with a capacity of 30,000 tons requires 400 million yuan. It takes 18 months to build a new kiln, which is a capital-intensive industry. Its industry concentration is relatively high. China's top five manufacturers, China Boulder, Taishan Fiberglass, Chongqing International, Shandong Fiberglass, Sichuan Microglass and Changhai Co., Ltd., have concentrated more than 80% of their production capacity. From the perspective of the supply side, the early market of glass fiber electronic yarn / electronic cloth continued to be slump, and project orders decreased. Some suppliers of glass fiber kiln closed down one after another. Under the new industrial policy, environmental protection and production restrictions made some middle and low end incompatible In the short term, production capacity has been compressed and supply is relatively tight.
The upstream material of epoxy resin is higher, and the production capacity is compressed in combination with environmental pressure. Synthetic resin has good mechanical properties, electrical properties and bonding properties, and is one of the important constituent materials of copper clad laminates. Different types of PCBs require different resins. Single / double-sided boards, multi-layer boards and HDI are mainly made of phenolic resin and epoxy resin. High-speed / high-frequency boards are mainly made of PTFE. At present, suppliers in mainland China and Taiwan mainly provide phenolic resin and epoxy resin. The upstream raw materials of epoxy resin (oxychloropropane, bisphenol A, etc.) are closely related to the trend of global crude oil prices. Shale oil costs and new regulations for ship fueling may intensify the contradiction between supply and demand of crude oil in 2019. There is still a certain price increase for epoxy resins. pressure.