PCB Industry Monthly Report for February 2012: Upstream Raw Material Prices CCL Brewing Price Upstream

North American PCB order shipment ratio (BB value) rebounded: In January, the North American PCB order shipment ratio (industry leading indicator) was 1.01, which was a slight increase from the previous month. Order volume continued to increase, while shipments declined. In which hard plate BB value rose to 1.01, soft plate BB value rose to 1.05. On the one hand, after the inventory adjustment in the 3rd and 4th quarters of last year, downstream inventory has reached a low level. The rebound in order quantity reflects the willingness of manufacturers to make inventory, and on the other hand, ipad3 will come out in March, driving the industry chain orders. Wang. Overall, the BB value rose back to above 1.0, indicating that the confidence of the industry has been restored, and ultimately the need for end consumers to respond to new products.

The number of new orders for computers and electronic products in the United States rose slightly: The US EMS shipment index continued to rise steadily in December 2011. Semiconductor shipments fell sharply in December, approaching the 2011 low; PCB shipments continued to fall, deeper than in November. After the number of new orders for computers and electronic products fell sharply in November, there were signs of bottoming out and a slight rebound.

January Taiwan's industrial chain situation: In January, PCB revenue rebounded upstream, and the midstream and downstream declined. Upstream raw materials, including fiberglass cloth, copper foil prices have a 10% increase, CCL prices are imminent. With the addition of orders from downstream customers to increase their inventories, the middle and upper reaches of the company are expected to bottom out. In the past season, the downstream hard board revenue continued to decline. Soft board (mainly apple industry chain) maintained at a high level.

Industry News and Comments: The industry fears that the HDI board will oversupply and the downward pressure on prices will increase. Smartphones drive the PCB up quarter by quarter.

Industry Investment Ratings and Investment Recommendations: Driven by smartphones, the most upbeat one in the first quarter was the soft board, which was the same as last year's 4th quarter or an increase of 5%-10%. Followed by IC carrier board, in addition to hard board. Affected by the downstream inventory and launch of new products, the market is expected to turn optimistic. We believe that further confirmation of downstream demand is needed. In general, optimistic about the smart phone's lead on the PCB, the industry is expected to be better quarter by quarter.