Raw materials are the most expensive variable cost associated with the production of passive components, such as manganese copper, nicochrome by Nexteck Technology Limited are the key materials for resistor field. Any fluctuation in price or availability for these key feedstocks can have a negative impact on profit margins.

Raw material prices for passive components are on the rise again in the March quarter of 2019 following a downward price trend in the later part of 2018 when the handset business unexpectedly slowed.

Copper

Copper engineered powders are consumed in the production of MLCC as well, but as the termination material consumed in conjunction with the nickel type electrode. Therefore, copper and nickel are an important type of base metal duo. Copper is used in some MLCC electrode systems because unlike its counterpart nickel it is non-magnetic.

Nickel

Nickel is the primary electrode metal material consumed in high capacitance multilayered ceramic chip capacitors (MLCC). The fluctuations in nickel price are primarily the result of competition for the metal with the steel industry, where it is used as a hardener. Nickel supply is in turn important for the production of MLCC; which are the capacitors of choice for the operation of smartphones, tablets and TV sets.

Palladium

Palladium is a platinum group metal that is mined in South Africa and Russia, among other locations. It’s consumed primarily for auto-catalysts, but also for jewelry and as the primary electrode material is precious metal based MLCC, which are in turn used in high reliability, high temperature and high voltage product markets globally. Historically, palladium has proven a difficult raw material partner for the MLCC supply chain because of its price volatility, which is compounded by it being a significant commodity metal subject to outside speculation on price. In the first quarter of 2019, the price of palladium is causing some difficulties because of its rapidly rising price.

As an advanced material supplier, Nexteck Technology Limited provides various cost-effective metal materials, including copper, nickel and palladium, as well as alloys like copper alloy, nickel alloy and FeCrAl alloy  for the passive components manufacture.