Copper clad laminate (CCL) makers could see fourth-quarter 2010 profits contract due to an increase in copper foil quotes, which rose 3-5% in September and another 5% in October. Additionally, with weak computer and electronics sales expected for the rest of year, which is historically the annual high season, CCL makers are unable to convince PCB customers to agree on quote hikes.

According to the London Metal Exchange (LME), copper has reached US$8,290/ton, the highest level since July 2008.

Taiwan-based Co-Tech Copper Foil noted that customers moved up procurement schedules to September in anticipation of the current increase in copper foil quotes, resulting in the second-highest monthly shipments ever, at 1,550 tons. Shipments for October should therefore weaken and fourth-quarter results are not expected to meet earlier forecasts.

Most PCB makers currently have sufficient CCL inventory, which has affected their October procurements, according to industry sources, adding that demand for notebooks, games consoles and LCD monitors has not rebounded substantially. Order visibility remains unclear for the rest of the year, and hence, most CCL makers are bearish on the fourth quarter.