After the Chinese aluminum electrolytic capacitor manufacturer Aishi announced the price rise at the end of April, now the Japanese manufacturer Rubycon and Taiwanese maker Capxon issued price increase notices in succession.
Rubycon said that the price of materials for aluminum electrolytic capacitors has risen, especially for aluminum ingots, and China's environmental protection policy has reduced the supply of raw materials. Rubycon has been doing its best to absorb the pressure of rising costs, making price adjustments a last resort. It is expected that the price adjustment will begin officially on June 1, 2018.
The Capxon stated that due to the state's regulation and environmental protection policies in China, all raw materials have experienced large fluctuations. Compared with the same period of last year, the overall material cost and production cost have risen by nearly 30%, which is beyond our company's total. It will be forced to increase the untaxed unit price by 10%.
The market price fluctuations of aluminum materials and environmental protection policies have brought a greater impact on aluminum electrolytic capacitor manufacturers. The operating conditions of aluminum electrolytic capacitor manufacturers are also evident. According to Aishi's Q1 financial report in 2018, its operating costs increased by 23.24%, the main reason comes from the increase in sales volume and rising material prices leading to cost increases. The operating profit and net profit have also been affected by factors such as rising material prices.
The rise in raw material prices has already exerted pressure on manufacturers of aluminum electrolytic capacitors. If the situation continues to be tense, it may further impact on manufacturers’s prices of aluminum electrolytic capacitors.