Terrible, passive components rose another 50% in April

Source: Content from "China Business Times", thank you.

Before the peak season arrives, the rising trend of passive components has been established. Yageo will increase the prices of its entire series of MLCCs (multilayer ceramic capacitors) from April 1. It is reported that the average increase will be between 40% and 50%, higher than the 10% to 20% in February, which means that the increase will be 2 to 2.5 times higher than in February.

Since Yageo plays a global role in out-of-stock MLCC specifications, Japanese and Korean peers and EMS manufacturers are paying close attention. Although Yageo has not officially issued a price increase notice, Chinese media reported that Yageo will implement new prices from April 1st. Domestic distributors have also confirmed that Yageo has launched a new wave of price increases, and it is expected that the price of MLCCs with specifications of 0201 to 1206 will increase from April 1st, with an average increase of 40% to 50%.

Distributors said that this wave of price increases is equivalent to price increases for the entire product line. Yageo had already directly increased prices when negotiating with customers in March, so it doesn't make much sense whether it issued additional price increase notices.

Yageo's average price increase in February this year was about 10-20%. In other words, the price increase in April was 2-2.5 times that of February. As the peak season is approaching, orders for pre-order materials are pouring in, and there are many orders that directly chase prices in exchange for shorter delivery times. In order to avoid customers running out of materials, Yageo has opened a delivery channel since last year, opening 20% ​​of spot goods every week for online bidding by distributors and EMS manufacturers, and the price is determined by the customer.

Distributors said that Yageo's average price increase in April was 40-50%, which is the average value. Some specifications that were in deficit or had previously been quoted too low even had price increases of 100-800%.

The market originally expected that the growth of MLCC would slow down this year, but the size and scope of Yageo's price increase in April were even greater than that. Distributors analyzed that this was mainly because the production capacity was originally in a tight state, and Japanese companies Kyocera and Murata also reduced production one after another, resulting in the supply of some commonly used materials such as 0402 and 0603 medium-capacity production capacity being very difficult, especially the 0402 105 specification. Since Murata mainly supplies to EMS factories, the number that can be released to distributors is limited. In addition, the wide application has led to a surge in prices. Entering the traditional peak season in the third quarter, the supply and demand gap may widen again.

Distributors pointed out that Yageo serves as a global benchmark in terms of out-of-stock specifications, and the out-of-stock situation has not improved so far. Korean manufacturers have already been planning to increase prices, and Yageo's pricing strategy may trigger a trend of following suit.

Since the beginning of this year, there are many manufacturers that have raised the prices of MLCCs. Murata, the world's largest manufacturer, has resorted to production cuts and price increases; Walsin also issued a price increase notice to its clients last week, raising the prices of its entire series of MLCCs.

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