1.“Electronics Industry Rice” MLCC has started a new round of price increases
Since the second half of last year, the “Electronics Industry Rice” MLCC (Chip Multilayer Ceramic Capacitor), led by industry giants Murata, TDK, and Samsung Electro-Mechanics, has started a new round of price increases. Currently, the supply of MLCC is mainly based on Japanese/Korea/Taiwanese manufacturers, and representatives from Communist China Eyang Technology, Fenghua Advanced Technology and Three-Circle Group have a combined market share of 7.5%.
For general products, the scale of production capacity determines the influence of the industry. For example, the industry giant Murata has an absolute advantage with a monthly production capacity of about 150 billion MLCCs, while the domestic monthly production capacity of Fenghua Advanced Technology and Eyang Technology is about 20 billion MLCCs, Three-Circle Group is about 12-15 billion MLCCs.
2.Chip shortage spreads to the field of home appliances
A global shortage of chips that has rattled production lines at car companies and squeezed stockpiles at gadget makers is now leaving home appliance makers unable to meet demand, according to Jason Ai the president of Whirlpool Corp in Communist China.
Microcontrollers, single processors, and other chips are all in a tight market. In March, Whirlpool’s chip deliveries fell short of its orders by about 10%. In addition, Robam Appliances Co Ltd had to delay the release of a new high-end stove vent by four months because it couldn’t source enough microcontrollers. The industry generally predicts that industry wide shortage of semiconductors could continue until 2022.
3.CCP tourists made 102 million domestic trips during the Qingming Festival holiday
CCP’s Ministry of Culture and Tourism announced on Friday that 102 million domestic tourists will travel during the Qingming Festival holiday in 2021, an increase of 144.6% year on year and a recovery of 94.5% from the same period before the epidemic. Domestic tourism revenue reached 27.168 billion yuan, up 228.9% year on year, and recovered to 56.7% in the same period before the epidemic.
4.Rising timber prices have caused some furniture factories to close
Beginning in August last year, the Communist China’s timber prices have gradually increased, which has made many downstream companies that have a large demand for timber miserable. Chairman of a furniture company in Suzhou, Jiangsu: Like imported black rosewood, last year, almost one cabinet cost 16,000 yuan to 17,000 yuan. Now it has risen to 23,000 yuan to 26,000 yuan. But the price of furniture cannot even rise by 5%.
Similarly, a decoration company in Suzhou, a construction site, the person in charge told reporters, due to rising prices of raw materials such as wood, they delivered the project, which will likely turn into a loss. Deputy general manager of a decoration company in Suzhou, Jiangsu: For construction timber, there has been an increase of 15% to 20% in varying degrees. As the world’s largest timber importer and second largest timber consumer, Communist China’s foreign timber dependency is over 50%.
5.The dilemma of the lower-tier property market
Housing prices in the main urban areas of lower-tier cities are about 6,500 yuan per square meter, which is 1,000-2,000 yuan lower than the peak. Many of the new properties here are developed by national real estate companies. Whether it is house design, area environment, supporting commerce, and community management, they are all done in accordance with the development procedures of first- and second-tier cities.
The local financial income is low, and it is impossible to repair the water, electricity, and gas network of old houses. Meanwhile, people’s income is low, and most residents have a monthly income of around 3,000 yuan. No one buys second-hand houses, new houses are beginning to backlog, and developers have cut prices for promotion. The prices of new houses on sale are not much higher than those of second-hand houses. Therefore, once there is new housing demand, new properties are naturally the first choice. The inventory of second-hand housing is getting higher and higher, making it more difficult to sell.
6.Yellen pledges U.S. international cooperation, calls for global minimum tax
U.S. Treasury Secretary Janet Yellen said on Monday that she is working with G20 countries to agree on a global corporate minimum tax rate and pledged that restoring U.S. multilateral leadership would strengthen the global economy and advance U.S. interests. Without a global minimum, the United States would again have higher rates than a number of other major economies, tax experts say, while the U.S. proposal could help jump-start negotiations for a tax deal among major economies. World Bank President David Malpass said finance leaders from the Group of 20 major economies on Wednesday would discuss global tax issues, including for digital services, adding that international attitudes were shifting away from continual tax reductions.
By 【Financial Team – Tracy】
News Collection: Wendy, Lingken