Demand reduction but material prices connector market downturn
The first half of 2006 connector demand situation surprising, very strong, then in the first half of 2007 fell. One important reason is the connector slowdown the pace of economic growth began to slow down. If the decline of the U.S. economy into recession, there may be a threat to the global connector industry growth.
But because the manufacturer will business shifted to Asia, the connector industry in this region is expected to remain the world's leading level in 2007, and is not influenced by the American economy. An important factor in driving the growth of connector sales demand communication, computers and industrial equipment of the connector.
The first half of 2006 connector prices rose by 6%, then because of weak demand, oversupply, fell to 1-2% in the first quarter of 2007. Universal connector Asian contract price, such as the SKT DIMM 168 x 1 90D G NB3F TH price in January this year to April, down about 1%.
Since the resin price of raw materials of copper and industrial interests influence on connector manufacturers and purchasing is great, especially in copper prices shaky situation.
Copper prices fell in 2006 the fourth quarter to $2.50 per pound, but are now rising again to 3.50 dollars / pounds. Although the components of rising costs, but because of weak demand, manufacturing in trying to maintain the current price.
If rising demand in the third quarter of 2007, the price of copper to maintain a high level, then the iSuppli believe that some of the top manufacturers such as Tyco Electronics, Amp Corporation and Molex, may consider again for the particular product line to raise prices, but only for a limited profit space.