Resin Price Hikes Begin, Upstream Materials for PCB Continue to Inflate

April 8, 2026

On April 3, 2026, Kingboard issued a letter announcing a 10% price increase on laminates and prepregs (PP), effective immediately, citing a sharp rise in chemical prices and tight supply. The primary driver is the Middle East conflict, which has caused prices of epoxy resin, natural gas, and TBBA to surge. As of April 3, liquid E-51 epoxy resin (East China benchmark) rose to RMB 18,300–19,500/ton, up ~40% since the conflict escalated.

FR-4 CCL now has further room for price increases. High industry concentration gives CCL manufacturers strong pricing power. Tight supply expectations for copper foil, resin, and electronic fabric continue to intensify. Copper prices may remain high due to a tight supply-demand balance. AI-grade glass fabric is crowding out capacity for standard fabric, sustaining upward price pressure on ordinary fabric. Electronic fabric has seen concentrated price hikes in early January, early February, early March, and late March.

PPO resin price hikes are driven by both cost push and supply-demand gaps. Total PPO supply in 2026 is around 6,000 tons before year end, but demand from M8–M9 grade CCL could reach 7,000–8,000 tons, widening the gap. On the cost side, phenol (a key PPO raw material) rose 34.55% month-on-month in March, giving PPO suppliers strong incentive to raise prices.

Resin is becoming a key differentiator for CCL. While copper foil and electronic fabric approach their performance limits, resin offers room for formulation optimization. CCL's core know-how lies in resin system formulation (resin, silica powder, additives). Upgrading to M9–M10 requires CCL makers to guide upstream resin formulation. Looking ahead, resin will play a definitive role in M10 upgrades.

Domestic chip sales (e.g., Loongson 950) may exceed expectations, accelerating earnings for the domestic PCB, CCL, and upstream materials chain in 2H26. Shengyi and other local CCL makers are not only breaking into the NVIDIA supply chain but also benefiting from domestic AI chip demand. Shengguan Group, a key resin supplier, stands to gain significantly, with earnings potentially accelerating from 2H26.

Key takeaway: This round of price hikes reflects cost pass-through from upstream raw materials. Supply constraints, not just demand, are the core driver. Upstream electronic-grade material suppliers (resin, additives) now enjoy stronger bargaining power due to high technical barriers and long certification cycles. Kingboard's price hike confirms cost pressure and sets a benchmark for the entire CCL industry.