The shortage and price increase of resistors have further intensified. Recently, resistor manufacturer Lizhi Electronics issued a price increase notice, with some products of Lizhi Electronics increasing by 15% -30%. It is expected that the shortage and price increase of resistors will continue until the third quarter.
On April 8th, Lizhi Electronics announced another price adjustment notice.
Lizhi Electronics stated that due to the high demand for its products, some of them have transaction cycles exceeding 16 weeks. Based on the reality of significant increases in raw material prices and tight supply, it has decided to raise the prices of thick film chip resistors by 20% to 30%, and for diode series and protective components by 15%.
Lizhi Electronics stated in the announcement:
In response to your extensive needs, Lizhi Electronics Kunshan Factory and Nantong New Factory are still expanding production, but there are still some products with delivery times exceeding 16 weeks.
In order to regulate and alleviate the current situation, and to cope with the cost pressure caused by the significant increase in raw material prices and tight supply, our company will make price adjustments starting from April 8th. The actual quotation shall prevail.
Adjust product scope:
1. Thick film chip resistors: full range of products and all resistors, increased by 20-30%
2. Diode series: Up regulated by 15%
3. Protective component: Up 15%
On February 22nd, Wangquan announced that all types of thick film resistors in the entire series would stop accepting orders. At that time, market participants estimated that Wangquan would initiate a second wave of price increases in the short term, and now it seems that this is indeed the case.
According to the international electronic commerce situation, the current situation of resistor manufacturers taking orders is indeed hot. The supply gap of products has spread from general resistors to high-precision resistors, and the delivery cycle has become longer. Some manufacturers have added new production capacity to meet the demand.
Behind the crazy price increase: rising raw material prices, supply-demand imbalance
The resistor market, which is in short supply, is facing environmental shutdowns and rising raw material prices, leading to a surge in prices. Resistance manufacturers including Guoju, Wangquan, Housheng, Lizhi Electronics, Guangjie Technology, Huaxin Technology, Fenghua High tech, etc. have all issued price increase notices. Such crazy price increases are due to the rise in raw material prices and the strengthening of environmental protection measures, as stated by resistance manufacturers in their price increase notices.
Wang Quan: Due to the continuous increase in raw materials and packaging materials, the company is facing great cost pressure
Thick voice: Due to the increasing environmental requirements, various raw materials continue to rise in price, and the companys operating costs continue to increase
Lizhi Electronics: Due to the continuous significant increase in raw material prices, the companys operating costs have increased
Guangjie Technology: Due to the significant increase in the cost of thick film resistor materials (packaging materials, pastes, electroplating materials, ceramic substrates)
Huaxin Technology: Due to the continuous increase in raw material and labor costs
Guoju: In response to the continuous appreciation of exchange rates, rising costs of raw materials and labor, and other factors; Due to the continuous rise in prices of multiple upstream materials, coupled with unfavorable factors such as substrate shortage, labor wages, environmental costs, and exchange rates
Fenghua High tech: Due to the rise in international commodity precious metal prices in the past year, the pressure on domestic environmental protection has increased, various raw materials continue to rise, and labor costs have increased
According to several notices, the reasons for the price increase are mainly reflected in the strengthening of environmental protection and the rise in raw material prices. Among them, the environmental shutdown has had a significant impact on raw material prices and capacity release.
Although the rise in raw material costs and tight supply are true, this upward trend is too crazy. Some industry insiders question the existence of speculation behind this frenzy. In response, industry insiders have expressed to the international electronics business that there may be some speculation or following the trend in this wave of price increases, but it is not widespread.
Fu Shiqiang, the marketing assistant of the first resistor business, pointed out that this wave of price increases is indeed somewhat following the trend. After all, this is a decade long prosperity of passive components, and most manufacturers hope to make a big profit from it. However, the main reason is still the imbalance between supply and demand. At present, resistor manufacturers are actively expanding production, and he believes that the tight supply of resistors may ease after the fourth quarter of 2018.
Yang Baoping, Chairman of Kaibu Electronics, believes that compared to capacitors, resistors do not have a large-scale speculative phenomenon. Because resistors have a wide range of resistance values, the capital required for trading is over 100 times that of capacitors, and there is a significant risk involved. Most manufacturers of low-end thick film chip resistors have continuously raised prices significantly, and some traders do engage in small-scale speculation, but in his opinion, the impact on the entire market is very limited.
Lin Jiancheng, the general manager of variable resistor manufacturer Bain&Company in China, said that there is a certain degree of speculation and following the trend in the market. Whether it is speculation or following the trend, it will disrupt the market order to a certain extent, cause confusion in supply and demand, and hinder the development of the industry.
At the end of December 2017, resistor giant Guoju announced that it would stop accepting orders for general thick film resistors because the demand for orders far exceeded its existing production capacity, and orders needed to be suspended to maintain delivery. This news sent a market signal that resistors were in short supply.
The following is the price increase information of resistors in 2018 (updated):
On January 2nd, Wangquan announced a 15% price increase for the 0402, 0603, 0805, and 1206 series surface mount resistors, effective immediately;
On January 4th, Guangjie Technology announced that CR0603, 0805, and 1206 packaged surface mount resistors would increase their prices by 10% compared to the previous price;
On January 9th, Lizhi Electronics announced a 15% increase in price based on specifications, and the adjusted unit price will be implemented immediately;
On January 10th, Guoju announced that the size of its general thick film resistor products (RC series) will range from 040206030805 to 1206; 2. Large size thick film resistor products (RC series), with sizes ranging from 1210, 1218, 2010 to 2512, will have their prices increased by+15% to+20%, effective from January 10th;
On January 15th, Huaxin Technology announced that thick film resistors such as 0402, 0603, 0805, and 1206 would increase by 10-15%;
On January 18th, Housheng announced a 15-20% increase in the current selling price for 0402~2512 packaged chip resistors and all specifications of Array chip resistors, effective from February 1st;
On January 22nd, Fenghua High tech announced that the RC/RS series 0402, 0603, 0805, and 1206 specifications of conventional resistance ranges would be increased by 7% to 13% based on the current sales price, effective from February 5th;
On February 1st, Guoju announced a price increase for medium to large-sized thick film chip resistors (0402-2512) and resistors (YCTC122-164), with an increase of about 20% to 30% or even higher, effective from February 5th;
On February 1st, Weishi Precision announced that new orders received from March 1st, 2018 will adopt a new price list, and unfinished orders will not be affected (Weishi Precision mainly focuses on high-precision surface mount resistors);
On February 22nd, Wangquan announced that it will temporarily suspend accepting new orders for all types of thick film resistors in its entire series, effective immediately;
On March 5th, Wangquan announced that it would increase the unit price of 0402, 0603, 0805, 1210, 2010, 2512 series surface mount resistors and thick film resistors such as 0402, Array, 0603, and Array series surface mount resistors by more than 25%;
On March 5th, Tianer Technology announced a 15% to 30% increase in the unit price of 0201, 0402, 0603, 0805, 1206, 022R, 024R and other specifications of resistors .....
On March 27th, Housheng issued a notice of resistor price increase, announcing that starting from April 1st, the 0402-2512 package chip resistors and all specifications of Array chip resistors will be increased by 25% -30% on the current price basis.
On April 8th, Lizhi Electronics announced a 20% to 30% increase in the price of thick film chip resistors, effective immediately .....
