Demand for such is increasing from PCB and battery production for e-mobility, leading to an upward price pressure for copper foils as post lockdown pent-up demand starts to exceed capacity. Lead-times are stretching and prices increasing particularly for heavy copper foils (2oz / 70 micron and above) as capacity is repurposed to maximize SQM output for light weight foils to increase capacity for lithium battery production. The trends are already evident in the pricing data for raw copper. Since March of this year, prices have continued to rise rapidly and have now even significantly exceeded pre-pandemic lockdown highs.
Similar conclusions were made in a recent report from Goldman Sachs who predict a sustained bull market for copper: “a bull market for copper is now fully underway with prices up 50% from the 2020 lows, reaching their highest level since 2017. This current price strength is not an irrational aberration, rather we view it as the first leg of a structural bull market in copper.” Demand for Epoxy resins, IMS, and MPCB continues be driven by the demand for thermal management solutions for high powered LED general & automotive lighting applications, as well as power conversion applications associated with e-mobility charging infrastructure and green energy generation, and all the competing industrial and consumer applications. As demand from these sectors starts to pick-up pace, post pandemic lockdown prices are starting to rise above their pre pandemic levels, introducing price pressures to the supply chain.
The trends are already evident in the pricing data for raw copper. Since March of this year, prices have continued to rise rapidly and have now even significantly exceeded pre-pandemic lockdown highs.
Similar conclusions were made in a recent report from Goldman Sachs who predict a sustained bull market for copper: “a bull market for copper is now fully underway with prices up 50% from the 2020 lows, reaching their highest level since 2017. This current price strength is not an irrational aberration, rather we view it as the first leg of a structural bull market in copper.” Goldman Sachs analysts raised their 12-month forecast for copper to US$9,500 per metric ton, up from a previous estimate of US$7,500. The Wall Street bank said it now expects a sustained, higher average price for 2021 and 2022.
