The average contract price for printed circuit boards (PCBs) will drop in the second quarter
The average contract price for printed circuit boards (PCBs) will drop in the second quarter, but then increase slightly in the third quarter and then stabilize, according to market researcher iSuppli.
Contract pricing for PCBs in the second quarter is expected to fall to 15.3¢ per square inch, down 8.4% from 16.7¢ in October 2008. Pricing will rise 1.3% to 15.5¢ in the third quarter and will remain at that level in the fourth, says the market researcher.
“Weak demand is negatively impacting PCB demand,” said Jason Ma, director and senior analyst, pricing and competitive analysis, for El Segundo, Calif.-based iSuppli. “However, PCB pricing trends now are being dictated by copper costs.”
Ma noted the price of copper reached a peak level of $4.10 per pound in the second quarter of 2008 and then began to drop, falling to $1.50 per pound in February. This drop, combined with falling pricing for another key raw material, laminate, has helped board suppliers to reduce costs.
Demand for PCBs has declined fallen significantly because of the global economic crisis. Board demand has dropped because of weak demand for computer and consumer electronics equipment and mobile phones. Ma predicts that PCB demand is expected to return as a factor driving PCB pricing in the third quarter, with a slight increase in sales helping to boost rates,.
Related posts:
