Despite market reports that Japan-based aluminum electrolyte capacity makers are looking to raise quotes in the first quarter of 2011, Taiwan's manufacturers indicate that they plan to hold prices steady before the Lunar New Year at least, and hope to win orders from their Japan-based counterparts via more competitive pricing. The Taiwan-based manufacturers, however, could follow suit after the holidays depending on market conditions.
Japan-based companies are raising quotes to counter rising material costs and currency exchange rate fluctuation, according to market watchers.
Japan-based makers are attempting to increase prices but actual impact on the overall industry will have to wait until after the Lunar New Year, the market watchers said, adding that not all players in Japan are raising quotes, which could make the attempt more difficult.
Most Taiwan-based aluminum electrolyte capacitor makers saw December 200 revenues fall sequentially due to clients digesting inventory at year's end. Lelon Electronics indicated that January revenues will be roughly the same as those of December, since clients have become more cautious about procurement ahead of the Lunar New Year.
Downstream manufacturers are carefully monitoring component and material inventory to prevent a pile up if labor shortages exacerbate after the holidays, the market watchers noted.
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