MLCC price increase! Another MLCC leader revealed that some part numbers have increased in price!

Source: Mantianxin

    The MLCC industry, which has been sluggish for a long time, is beginning to receive new news. Following the price increase letter issued by Sanhuan Group, Fenghua High Tech also has a price increase signal.

    On April 12th, at the 2022 performance briefing of Fenghua High tech, many investors also expressed curiosity about the MLCC terminal selling price of Fenghua High tech.

    According to a report by Cailian News Agency, a Fenghua High tech executive said in an interview after the meeting that "our company mainly adopts a market based approach, some MLCC part numbers are increasing in price, but not all products are increasing in price. When asked about the specific price increase, the above person stated that because the demand for various aspects of the terminal has not yet fully recovered, the price increase of products varies greatly in different fields and sizes.

    Prior to this, the price increase letter issued by Sanhuan Group has attracted market attention.

    According to the price increase letter from Sanhuan Group, it is stated that after full communication and consensus with some partners, the actual transaction prices for each month of the second quarter have been comprehensively increased. All signing partners have made synchronous and proportionate adjustments and implemented since the approval of new sets submitted in April.

    In addition, the revenue of Taiwan, China‘s large passive component manufacturers has also improved in recent months. Huaxin Technology‘s operating conditions in March exceeded market expectations, and Guoju also announced an increase in revenue compared to February.

    Nomura Oriental International Securities Dai Jie believes that the current inventory adjustment of MLCC general products is approaching its end, and the decline in MLCC shipment volume/price is gradually stabilizing, indicating a clear signal of industry bottoming out.

    The further analysis of CICC Technology pointed out that MLCC is a typical oligopoly industry, and the rising price of domestic dragon hair indicates that demand is stabilizing and warming up.

    According to TrendForce data, the MLCC supplier BB Ratio (Book to Bill Ratio) slightly increased to 0.79 in February 2023. Jibang Consulting pointed out that although the consumer electronics, data center, and Netcom 5G infrastructure markets have returned to the traditional off-season cycle and order demand has slowed down, the order volume of automotive MLCC in the first quarter of 2023 is relatively stable. It is expected that MLCC suppliers will actively invest in research and development and expand the production capacity of automotive products throughout the year.

    The industry stated that in 2022, the MLCC industry experienced a low point of price reduction and inventory reduction. With the recovery of demand for automotive and industrial MLCC, inventory reduction is gradually completed, and some product prices are rebounding. The MLCC market is expected to experience a recovery in 2023.