Latest news, passive component manufacturer Guojiu issued a notice saying that the price of thick film resistors in the first quarter will be increased by 10-15%!
Regarding the rumors, Guoju said that he would not comment on market rumors, but he would look at demand in the first quarter, and the price would be decided by the supply and demand mechanism.
News pointed out that under the tight supply and demand, Guoju small-sized thick film resistors (0402/0201) rose 10%, 0603/0805/1206 and 4D02/4D03 even rose 15%. Due to the continuous influx of orders, the production capacity was not in time. Since 2020/01/01, the thick film resistors have suspended orders.
Although Guoju did not respond positively to the rumors of stopping orders and price increases, the company said it would do its best to meet customer needs and also view the declining demand in the first quarter, which will help support the price trend.
It is understood that the current demand for passive components is mainly driven by 5G mobile phones and base stations. In addition, the supply has also been slower due to the unsuccessful recruitment of workers, resulting in a tighter supply. Although Guoju encourages employees to work overtime, the current revenue rate remains at around 40%-50%.
and will enter the Spring Festival holiday next. If the price increase and shortage cannot be relieved, supply chain personnel analyzed that the price increase in February may continue.
It is reported that Samsung Motors (SEEMCO) and Fenghua Hi-Tech have also stopped taking orders, and the exchange of passive components may be extended to 6 months. Fenghua Hi-Tech has also reported that even if it does not accept orders for 3 months, it will not be able to supply existing demand.
, and with tight supply and demand, the market also reported that the delivery schedule of Guojiu has been extended to half a year, and the downstream will not get the goods until at least June-7. However, in response to market rumors, Guoji has not made much comments.
, and Guoju Chairman Chen Taiming pointed out last week that there is currently no inventory in the upstream, middle and downstream. Therefore, in addition to the normal demand of the industry, the demand for replenishing inventory has indeed prompted the supply and demand of passive components to be more tense.
