In 1H 2022, lithium battery copper foil market experienced prosperity with producers full of operating rate, receiving plenty of orders and commissioning new capacity. However, standard copper foil market was in completely opposite situation. Electronic industry demand declined, and end users' inventory cannot be digested, which led part of producers cut 20-30% production. Processing charge of standard copper foil kept falling. August 18µm copper foil processing charge was Yuan 24,000/t, -4.3% MoM and -25% compared with the beginning of the year. August 35µm copper foil processing charge was Yuan 20,500/t, -6.8% MoM and -31.7% compared with the beginning of the year. August 70µm copper foil processing charge was Yuan 22,500/t, -6.3% MoM and -27.4% compared with the beginning of the year.
Data Source: Mysteel
According to Mysteel survey, standard copper foil revenue also decreased by 5-10% YoY. Delivery in Guangdong market fell by 13.5% YoY and utilization rate for foil producers was 80%. Producers reorganize production plan according to market demand and those with few orders cut 30% output. Companies who own lithium battery copper foil production lines shifted to produce lithium battery foil.
Data Source: Mysteel
The main customers for standard copper foil producers are copper-clad plate companies. Standard copper foil is principal material of copper-clad plate and accounts for 30-50% of the production cost. Mysteel learnt that sales of copper-clad plate declined by 10-30% YoY in 1H 2022. Big scale producers' revenue fell by 5-30% YoY while middle scale companies fell by 20-40% YoY. Large number of producers expanded capacity last year due to market shortage. By contrast, demand shrank significantly in 2022 when facing coronavirus control and macro downward trend, which imposed some small producers to bankrupt.
Data Source: Mysteel
Entering into September, traditional consumption peak season is coming, and electronics giant enterprises concentrate to launch new products. The increase in the consumption of terminal electronic products is expected to drive the demand growth of PCB and copper clad plate industry, thus leading the orderbooks of standard copper foil enterprises gradually turn better. Mysteel expects processing charge of 18µm copper foil will maintain at Yuan 23,000-25,000/t and processing charge of 35µm copper foil will remain at Yuan 19,000-21,000/t.
For queries and more information/data/reports access, please contact Paula Xu at xuzhongping@mysteel.com
