Material prices have risen sharply, seriously affecting the gross profit margin of the connector industry.
In 2021, various factors will lead to a sharp rise in the prices of the main raw materials of connectors, such as copper, plastic, gold, and steel. Among them, copper prices continued the rise in 2020, and continued to rise in the first half of 2021, with the highest point reaching 76,977 yuan per ton on May 10. At the end of 21, it was 69,425 yuan per ton. The full-year increase in 2021 is 19.8%. Polymer materials such as LCP, PBT, and PA also rose sharply, ranging from 40% to 150%. According to the Bishop  briefing report, the cost of connector materials has increased by more than 42% year-on-year.

The rise in material prices has brought heavy pressure on connector companies with a high proportion of material costs, and the overall gross profit margin of the connector industry has declined. In the field of high-end applications, the situation of high dependence on external connector materials has not fundamentally changed, and there is a greater supply chain risk. In addition to rising material costs, the global epidemic and customer chip shortages have also adversely affected the connector industry.