Resin price hikes threaten gizmo profits

Price rises for polycarbonate used in a large number of electronic products are set to dent profits for makers of everything that’s got bells and whistles attached to it.

That’s according to nikkei.com, which says that manufacturers of resin are rattling their sabres and hiking prices due to high demand and the price of oil.

According to the report, a number of manufacturers including Teikin and Mitsubishi Engineering have demanded that their customers cough up and pay the higher prices they want.

Part of the resin crisis has come about because the Chinese government  encouraged LCD TV manufacturers to sell more of their devices in the country in a bid to give the economy a little fillip.

That caused shipments of polycarbonate to soar by 40 percent last May.  It’s not just the electronics industry that’s being affected by the price surge – it seems the automotive industry too is being expected to pay through the nose for polymer and plastics they require.

Shortages are also the order of the day in the semiconductor industry because manufacturers hadn’t anticipated that bust would turn to boom within the space of 18 months.

The nikkei.com report is here (subscription required).