MLCC Re-Call | Dense Catalysts at Low Levels, Second Round of Price Hikes Underway

English summary

Today the MLCC sector strengthened again. Fenghua Advanced Technology hit the daily limit, Sanchuan Group once rose 9%+, and Boqian New Material once rose 7%+. Previously, the MLCC concept index had pulled back over 40% from the July 1 high. Even with today's rebound, the sector remains at a relatively low level after a sharp pullback from stage highs, and trading congestion has clearly been released. #The second round of price hikes is starting. Taiyo Yuden's price increase notice announced another MLCC price increase effective September 1, and clearly stated that even after the increase, delivery times cannot be guaranteed to meet customer requirements. Meanwhile, industry information indicates Samsung Electro-Mechanics plans to raise prices by 30% from August 1. After Yageo's first round of comprehensive price adjustments in July, expectations for a second round of price increases at the channel level are also heating up, and high-capacity channel prices are expected to stabilize and rise. #AI customers have begun cross-year lock-in orders. On July 23, Samsung Electro-Mechanics signed another AI server MLCC order of KRW 295.12 billion, fully covering 2027; coupled with the approximately KRW 454 billion order in June, the two long-term agreements in one month total about KRW 749 billion. ...