Current situation and analysis of copper foil price of PCB board

Current situation and analysis of copper foil price of PCB board

Since the second half of last year, benefiting from the rapid development of electronics, new energy vehicles and 5G industries, the copper foil industry has entered a period of high growth, and the supply of products has been in short supply, resulting in a continuous rise in copper foil prices. Recently, the copper foil market has ushered in a price hike again. The average price of copper foil has risen by about 22% compared with the beginning of the year, and the price of electronic copper foil has risen by 60% since the low point in 2020. Affected by this, related companies have begun to expand copper foil production capacity.In this regard, some industry insiders said that the expansion cycle of copper foil is long, and the full production is generally about two to three years. Therefore, the shortage of supply will become the norm in the next few years. Copper foil is a cathodic electrolytic material, a thin, continuous metal foil deposited on the base layer of the circuit board. The formation of circuit patterns is an important material for the manufacture of copper clad laminates and printed circuit boards. It has a wide range of applications and is mainly used in digital cameras, mobile phones and other precision electronic products, computer communications, wires, cables and new energy vehicles and other industries.

In recent years, with the rapid development of downstream new energy vehicles, 5G communications and other industries, the demand for upstream lithium battery raw materials has continued to increase. According to data from the Ministry of Commerce, in 2020, the production and sales volume of new energy vehicles in my country will be 1.366 million and 1.367 million respectively, hitting a record high. It is expected that the new energy vehicle market will continue to develop in the next few years. Therefore, the demand for copper foil will continue to grow. Industry insiders predict that by 2025, the total global demand for lithium batteries will reach 888GWh, and the total demand for lithium battery copper foil will be 755,000 tons, which will triple in the next five years. room for growth.Some industry analysts said that the market demand is large, and the price of copper foil will run at a high level this year, and will continue to rise. It is understood that the price of copper foil is usually composed of copper price and processing fee . According to industry data, the current copper foil processing fee has risen by nearly 50% from the lowest point in 2020. The current processing fee for 8μm copper foil is about 30,000 yuan/ton, the processing fee for 6μm copper foil is 45,000 yuan /ton, and the processing fee for 4.5μm copper foil is 45,000 yuan/ton. The processing fee is at the level of 70,000 to 75,000 yuan per ton, and the processing fee for some types of electronic copper foil has increased by 100% compared with June last year.

In addition, during the "May Day" holiday, the price of copper in London has topped $10,000, just one step away from the 2011 high of $10,190. On May 7, Shanghai copper reached its highest intraday level since March 2011, reaching an intraday high of 74,950 yuan/ton and closing at 74,900 yuan/ton.

Some industry analysts said that in the case of tight supply and good demand, copper prices may usher in a new round of bull market. Among them, major international investment banks such as Goldman Sachs and Citibank also raised their expectations for copper prices again. Goldman Sachs expects copper prices to hit $11,000 per ton within six months. Although many companies have begun to increase their horsepower to expand production. However, industry insiders said that it will take more than two years to release the production capacity of these expanded enterprises, so before the production capacity is released, the market will continue to be in short supply. After the production capacity is released, that is, two years later, the supply and price of copper foil will be controlled, and the price increase will not change until then. Industry-leading companies like Tongling Nonferrous Metals undoubtedly have very good performance expectations.