Chinese part manufacturers forced to increase quotes

Notebook part manufacturers may be forced to increase quote prices for power supplies and cooling modules in China as labour costs and copper prices are rising, reports the Digitimes.

Copper prices have reached a 20 month high, and China is expected to remain the biggest importer of the metal this year, according to some reports. Power supplies and cooling modules in particular need a massive amount of copper as a raw material.

The rising prices as reported here by Reuters are placing strain on the manufacturers, pushing quotes higher to make ends meet. Digitimes says that with the short supply of components at the moment, notebook manufacturers are scrapping with each other to try to bag the best supplies. This will give part makers more trading power when it comes to price negotiations with clients.

Auras Technology, which makes cooling modules, told Digitimes that at the moment production isn’t being affected by the copper price growths as it already bought up plenty of raw materials before the increment. If prices remain high at all levels, though, the company said it will have to consider raising prices for its products.

It may however be a different story for manufacturers who have not managed to build up significant raw material inventories before the hike.

TechEye has already had insider tips that China may be displaced by India as the factory of the world, as we reported here.