The object of speculation in hot money has expanded from agricultural products to electronic products.
"The price of avx10u16v tantalum capacitors in April is 0.26 yuan each, now it is 0.6 yuan each. Almost all the tantalum capacitors are rising, and some have multiplied," said Wang Yongjun, general manager of Shanghai Xianfa Computer Technology Co., Ltd. anxiety. Since March and April of this year, the sharp increase in the prices of electronic components and the prolonged delivery cycle not only caused the order of the first-line company to fail to be delivered on schedule, but also further reduced the profits of the company.
Hot money hoarding, hype electronic components
"The cost of individual brands of capacitors and optocouplers is nearly doubled, and the shortage is serious. This phenomenon is certainly not normal." Wang Yongjun and the industry's friends exchanged a consensus: there are hot money hoarding, hype electronic components, " It's like garlic and green beans."
Wang Yongjun analyzed that there are probably two types of speculation: a large number of well-known brand components that are used to stock up on the market. They only enter the market, enter more and less, or simply refuse to sell, resulting in an illusion of being out of stock. After the price rises, it will sell the inventory again and make huge profits. Another way is to monopolize sources of goods privately through large agents, resulting in shortage of goods in some areas and drive up prices.
Wang Yongjun introduced that, nationwide, and even globally, the market capacity of certain electronic components is not large. According to estimates, basically every electronic component's circulation market is about one hundred million yuan. And as long as the control of about 30% of the supply, only tens of millions of dollars can be speculation.
Wenzhou Funds Intervene in Semiconductor Industry
“It is no coincidence that the sharp increase in the price of electronic components has started in March,†said Gu Wenjun, an analyst at semiconductor company Isuppli.
From about 2009, many Wenzhou companies began to set foot in the electronics and LED industries and started to use mobile phones. Almost simultaneously with the Wenzhou funds, from the second quarter of 2009, more and more private funds were found in Gu Wenjun, hoping to participate in shares, and share semiconductors and other high-tech enterprises. "The launch of the GEM has given them a chance to see a fortune overnight," said Gu Wenjun.
He believes that private funds have largely flowed into the electronics industry. In the semiconductor industry, it is common for dealers to pick up and raise prices. The storage products that are used in mobile phones, computers, etc. have increased from US$0.50 per unit at the end of 2008 to the current US$3 per unit. "Especially the recent increase was relatively large and abnormal."
“The regulation and control of the property market has caused a large number of Wenzhou private funds to withdraw from the property market. When private capital flows into the electronics manufacturing industry, the nature of profit-making has led them to discover that the hype components seem to make faster than making computers and mobile phones.†Gu Wenjun believes that this is the cause. The important reason for the recent skyrocketing prices of electronic components.
Electronic components have hype conditions
Gu Wenjun said that capacitors, resistors, and storage products belong to standard parts, and they must be used as long as electronic products are produced. Moreover, it is large in usage, low in price, easy to be hoarded, and does not have to worry about selling. "It is the best speculation target."
In addition, due to the characteristics of the electronics industry, once a certain brand model component is selected in the product, the design will not be easily changed during the continuous mass production process. Therefore, any type of component of the big brand is stable. The market demand and sustained consumption, speculators are not shipped. The production plan for electronic components is also cyclical, and it is difficult for manufacturers to quickly increase production for sudden market demand.
In order to avoid delivery on time, the start-up company increased its inventory of electronic components. However, this kind of behavior is very dangerous in itself: it not only makes the situation that the supply of electronic components is in short supply fall into a vicious cycle, but also occupies a large amount of liquidity of the company.
"When the price of components rises, downstream companies will lose money due to rising raw materials; when they collapse, they will lose money because of the accumulated inventory and depreciation. It is very destructive for the industry." Wang Yongjun said.