Up to 40! MLCC volume and price increase simultaneously

Source: CCTV Finance

    According to a report from CCTV Finance and Economics, the price decline cycle of MLCC has exceeded 14 months due to weak downstream demand. However, since the beginning of this year, the shipment of this type of component has started to increase significantly, and some companies have recently issued product price increase letters.

    After more than a year of price decline, MLCC (Multilayer Ceramic Capacitor) has finally ushered in a boom of simultaneous increase in production and sales prices.

    On May 8th, according to a report from CCTV Finance and Economics, due to weak downstream demand, the price decline cycle of MLCC has exceeded 14 months. However, since the beginning of this year, the shipment of this type of component has started to increase significantly, and some companies have also recently issued product price increase letters.

    According to analysts, in the first quarter of this year, MLCC products of different models and specifications have increased prices to some extent, with price increases ranging from 20% to 40% for high capacity products and 10% to 20% for low capacity products.

    The areas where MLCC has the most applications are mobile phones, new energy vehicles, home appliances, etc. But starting from the second half of 2021, the shipment volume of mobile phones, home appliances and other industries has decreased, and the demand for MLCC has correspondingly decreased. Both production enterprises and agents are lowering prices one after another. It was not until the beginning of this year that product prices stabilized.

    According to the Science and Technology Innovation Board Daily, Sanhuan Group just released a Q2 price increase letter last month, announcing a comprehensive increase in the actual transaction prices of orders in each month of Q2. All signing partners have made synchronous and proportionate adjustments and implemented them since the approval of new orders submitted in April. Later, a Fenghua High tech executive also revealed in an interview that the company mainly adopts a market based approach, with some MLCC part numbers increasing in price; There are significant differences in price increases for products of different fields and sizes.

    Downstream demand has recovered, and domestic leading enterprises have taken the lead in launching this round of price increases. In fact, not only the product price, but also the current MLCC shipment volume is significantly increasing.

    The deputy director of an electronic component enterprise in Chaozhou, Guangdong said, "It can be seen that the demand for MLCC has significantly increased in industries such as new energy vehicles, photovoltaic energy storage inverters, and servers. The increase in orders is also significant. In these three industries, both the quantity and amount of shipments have increased by more than ten times year-on-year

    This situation is not a case in point. According to CCTV reporters in an interview, several major MLCC production enterprises in China have experienced a simultaneous increase in production, sales, and prices. Regarding MLCC‘s future shipment expectations, various companies hold a more optimistic view, and more MLCC production companies are planning to raise prices.

    The vice president of an electronic component enterprise in Shenzhen, Guangdong said, "In fact, from the perspective of communication information in the entire consumer category, everyone‘s general planning will focus on the second half of the year. It is not ruled out that there may be a possibility of price increase for some of our individual specifications of materials