Nan Ya Printed Circuit Board (NPC) is planning to reduce prices by 3-5% in Taiwan and up to 10% in China from October, which will put pressure on the sales of other copper clad laminate (CCL) makers, according to industry players.
Due to lowering inventory levels and decreasing copper prices, NPC has decided to pass the savings from October inventory cost reductions to its customers. Competitors such as Elite Material (EMC), Taiwan Union Technology (TUC) and Uniplus Electronics may follow suit, the sources noted.
Taiwan CCL makers indicated that copper clad prices for October have been reduced 5-6%, which is expected to allow makers to reduce costs by 2-3% since copper clad accounts for 40% of CCL total costs.
PCB makers commented that the range for NPC's price adjustment is higher in China than in Taiwan due to the company's huge scale in China. China-based CCL makers may be pressured into either losing orders or profits since they typically only have single-digit gross margins.
Copper prices have declined to less than US$7,000 per ton and may continue declining till November; however, the pace of price reductions for copper as well as CCLs is slowing down, the sources added.
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