Taiwan-based aluminum electrolytic capacitor makers see sales bottom in November and December

Taiwan-based aluminum electrolytic capacitor makers have indicated that revenue declines will end in November and December as clients finished adjusting their inventory. Looking at the supply side, high-voltage aluminum capacitors are in tight supply due to a shortage of aluminum foil and steady demand.

With clients lowering inventory in the third quarter, which is historically the peak season, aluminum electrolytic capacitor makers said that the inventory adjustment process is almost complete and clients have gradually begun a new round of procurement. Taiwan-based Lelon Electronics and Taiwan Chinsan Electronic Industrial will see November revenues reach the level of October, and only single-digit-percentage declines for December, according to market watchers.

Despite lower demand for photovoltaic (PV) inverters in the fourth quarter, shipments of high-voltage aluminum capacitors for wind energy systems and LCD TV power supply had remained fairly strong. Lelon pointed out that it is currently developing large-size aluminum capacitor products to raise ASP.

In addition to steady demand, the makers also attributed a shortage of aluminum foil for the tight supply of high-voltage aluminum capacitors. Aluminum foil maker Liton Technology recently said that some of its production lines in Abazhou, China are now operational to fulfill customer demands but orders in excess of capacity will likely persist.

Low-voltage aluminum capacitor supply, however, is relatively more sufficient. Jaan Cherng Technological, which makes aluminum foil for low-voltage products, noted that demand is steady at the moment and would reopen idle product lines if needed.

Since a large portion of materials comes from Japanese suppliers, makers are more cautious now due to a fluctuating Japanese yen and have attempted to quote in Japanese yen instead of US dollar, according to industry sources, adding that customers have yet to accept the new terms thus far.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.