Printed circuit board (PCB) makers may see their profitability improve as soon as the fourth quarter of 2008 as prices of key materials, which include solder paste and copper clad laminates (CCLs), are declining.
Pcb china Industry players indicated that the price of tin, the key raw material for solder paste, has declined to US$19,000 per metric ton recently, down from US$22,000 late in the second quarter. Once the price drops to US$19,000 or below, pressure for a price adjustment surfaces, they said.
As a leading solar paste maker in Taiwan, Shenmao Technology said it is still housing a safe level of inventory at the moment. If material prices remain flat, Shenmao said the declining material cost may be reflected in its average selling prices (ASPs) in September and October. It added that a downhill material price trend will only exercise a positive impact to profitability in the fourth quarter, citing sufficient inventory on hand.
Pricing of CCL may also trend downward. But the weakening price trend is not only due to dropping copper costs, but also due to a relatively high inventory level, said industry players. Industry sources indicated that Nan Ya Printed Circuit Board (NPC) has lowered its quotes for selected customers whereas rival Iteq has also cut prices of its halogen-free CCL by 10%. But both companies declined to comment on their pricing strategies.
