Electronic Components Prices in 2011—Rise or Not?

Because of the increasing costs of labor and raw materials, it is expected that some electronic components will rise in their prices in some degrees. Based on the market survey, inductors and electrolytic capacitors belong to these electronic components as well.
Actually, manufacturers do not insist that the prices of all electronic components will go up in 2011, for example, OVP parts. Lots of manufacturers believe that the price of OVP parts will be stable and will not rise obviously in this year. By contrast, as for aluminum electrolytic capacitors market, some experts of IC components industry, for example, Liu Quanwang, aluminum electrolytic capacitors product marketing director of TDK-EPC group member, Greater China EPCOS, suggest that the price of aluminum electrolytic capacitors would develop in the rising trend. The reason for this phenomenon of electronic components market is the rising cost of some raw materials and energy costs. Moreover, it needs to point out that the raw materials above refer to aluminum and papers and so on; while, energy costs consist of the main production costs of anodic aluminum foil.
At the same time, the costs of labor in China rise rapidly as well and some specialists predict the increasing trend of the cost of Chinese labor will continue in the coming years. What’s more, tantalum electrolytic capacitors’ situation is similar to aluminum electrolytic capacitors’ which has been introduced above. According to the above analysis, some but not all electronic components will rise in their prices in 2011.