Strong demand for copper foil, it begin to show supply bottleneck.
Analysis from running conditions of copper foil: First, the annual demand of new energy lithium battery copper foil is about 43,000 tons in 2015, and the output is about 42,000 tons, the supply and demand basically unchanged. And in 2016, the annual demand is about 60,000 tons, but the output didn’t increase. What happened to this? Because last year, some copper foil supplier had already changed business scope into LI battery industry, no more suppliers can change now.
The first country for copper foil is Japan, now only Furukawa of Japan still manufacturing Li copper foil, but they also produce normal copper foil. And for other four big copper foil factories, they only produce High-end copper foil, so they didn’t make supply quantity increase.
The second one is Korea, there are two large scale factories in Korea, and now one factory had 100% produced LI copper foil, and the other one is 90% produce LI copper foil. However, Korea also is PCB Producing nation, it had been affected so much.
The third one is Taiwan China, the world’s biggest copper foil factories all in Taiwan, there are well known brand Nanya, and no.2 is Changchun, no.3 is Jinju, no.4 is Lichangrong. They all also had their own CCL. In all over the world, Taiwan’s CCL and PCB industry are all leaders. So the new energy market upset them so much too.
The fourth one is China mainland, copper foil factories like Shandong Zhaoyuan, Tongling Youse and so on, they mainly produce normal copper foil, now the factories like Nuode and Henan Lingbao, their 90%’s capacity changed into Li copper foil, and now only some factories still produce normal copper foils.
So strained market demand is very normal. And as a new peak period coming, such tight demand will more obvious, we estimate such situation will keep to year 2018 or even longer. Why we think so? Because it needs a long period to expansion copper foil plant, for about 10,000 ton’s investment scale, it needs about 18 months to 24 months. Analysis according to expansion speed, the year 2016 will have no more LI productivity, so it will have big effect in year 2017 and 2018.