Electronics Production | January 08, 2010

Connector price trends

China based Frbiz has analysed the trend of decreasing prices for connectors. The company predicts that the revenue from the global connector market will rise eight percent.
In the first half of 2008, the demand for connectors was surprising, and very strong; it was followed by a decline in the second half of 2008. Business slowed down, which was a major reason behind the pace of development of the U.S. economy beginning to slow down. The U.S. economic downturn and recession situation has threatened the global connector's industry growth.

However, as manufacturers move operations to Asia, the region's connector industry is expected to lead globally, not subject to the U.S. economy. Promotion of sales of connectors is increasing; an important factor is demand for connectors for use in telecommunications, computer, and industrial equipment.

In the first half of 2008, the price of connectors rose by 6 percent and then due to weak demand and oversupply, dropped to one to two percent in the first quarter of 2009.

All along, the prices of raw materials for industrial connectors' resin, such as copper, greatly impacted the purchasing interests of the connector's manufacturers, especially when copper prices fluctuated.

As demand rose in the third quarter of 2009, copper prices remained relatively high, Frbiz believes some of the top manufacturers raised prices, but only to maintain limited profit margins.


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