By clicking the “I Accept” button, or by accessing, participating, or submitting any information, or using the Jabil Global Intelligence Portal or any of its associated software, you warrant that you are duly authorized to accept the Global Intelligence Portal Terms and Conditions on behalf of your Company, intending to be legally bound hereby, and your company shall be bound by the terms and provisions of the Global Intelligence Portal Terms and Conditions, accessible under the following link Portal T&Cs.
Jabil's Global Commodity Intelligence Archive
Q3 2022
Jabil's Global Commodity Intelligence Archive
Q3 2022
INTERCONNECT COMMODITIES
CONNECTORS
- Most of the suppliers’ factories are running at nearly full capacity. There are still certain factories further constrained due to the spread of Covid in China and the restrictions enforced by the government.
- The Shanghai lockdown has caused some factories to shut down and the impact is still being assessed. The greatest concern is on logistics – both incoming raw material and outgoing shipments.
- Many of the suppliers are still carrying significant backlog so we are not seeing much flexibility to support urgent upsides and pull-ins.
- Raw material (copper alloy, metal strips, and resins) shortages continue to be a challenge and we are expecting this to continue through 2022. Adding to the challenge is the current logistics constraints that has caused shipments to be longer than usual.
- Key suppliers’ book-to-bill ratios remain high and range from 1.08-1.2:1.
- Supply base remains stable with no tell-tale sign of any suppliers exiting the market.
- January 2022: Samtec Inc. acquired Ultra Communications Inc., a Vista, California-based manufacturer of high-speed digital and RF fiber optic components. Ultra Communications’ core competencies include circuit design, optoelectronic package design, and the manufacturing of fiber optic components.
- January 2022: TE Connectivity has acquired the force-guided narrow safety relay (NSR) elementary relay technology from the Phoenix Contact Group (Phoenix Contact), as part of a long-term partnership agreement. The acquisition adds a single-pole, force-guided offering to TE’s broad relay portfolio for the factory automation, elevator, and rail markets
- January 2022: Trexon announced that it has completed the acquisition of Power Connector Inc. (PCI), a leading supplier of tactical communications interconnect for military applications.
- Overall pricing continues to increase due to capacity constraints caused by the virus outbreak. Exacerbated by raw material (gold, copper, palladium) prices trending up, raw material supply constraints (copper alloy, resins), and freight cost, we do not foresee opportunities for reductions in the next few quarters.
- Continue to see price increases from most of the manufacturers as they no longer can absorb the raw material and freight cost increases.
- For 2H 2022, pricing will be very dependent on raw material and freight costs, we do not see any sign of the increases easing. This may persist into the 1H 2023.
- Price increases are still common on legacy products like Headers and Receptacles, D-Sub, and labor intensive RJ45 Magjacks.
GOLD, COPPER & PALLADIUM PRICE TRENDS
RELAY, SWITCH & BATTERY
- Relay prices have been driven upwards due to raw material increases and capacity constraints; the major players Panasonic, TE, Omron, Fujitsu are fully booked until next year. Automotive Relay demand appears soft due to the impact caused by the semiconductor shortages and the Covid-19 impacting supply chains in Shanghai. Overall lead times remain flat compared to last quarter, with a few specific types still under allocation including significant lead time increases from Panasonic and TE.
- Switch prices increased slightly due to raw material costs increasing and freight cost increases; Overall lead times remain flat when compared to last quarter. C&K switch is acquired by Littelfuse. Inc in April, updates to the organization and the strategy are expected soon.
- Battery prices continue to increase, primarily due to the cost of Lithium which has dramatically increased in price (up 500% since February 2021), the demand for Batteries remains strong driven by the Global EV and ESS markets. In the short term, China’s battery raw materials market is struggling to recover from the latest Covid-19 outbreak in the country and the related lockdown measures imposed to prevent further spread of the virus. This may cause Battery pricing to continue increasing in the future.
- Overall lead times remain stable when compared to last quarter.
Back to Top