Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Taiwanese companies witnessed growth in revenue as end-users of aluminium capacitors shifted their focus to the industries near home. With rising demand for EVs, charging infra, solar power generation and smart manufacturing, the demand for capacitors is expected to remain strong, according to local media reports. 


Aluminium electrolytic capacitor companies in Kaimei and Lilongdian saw an increase in revenues in June. Similarly, the revenue for Jinshan Power also reported a rise in revenue. As COVID-19 cases surged in Malaysia and Indonesia, the supply chain was disrupted, which in turn affected the supply of aluminium capacitors from Japan. 


Following the suspension of the Japanese aluminium and power plant for two weeks in July, two capacitor companies reported growth in their June revenue. 


Kaimei’s June revenue reached CNY723mn ($111.72mn), a record high for the fourth consecutive month, with an annual growth rate of 98.34pc and a monthly increase of 2.37pc. The second quarter’s revenue was CNY2.124bn, the fourth consecutive month. It reached the top in the second quarter up by 168.5pc over the same period last year.


Lilongdian’s June revenue set a record at CNY824mn, a monthly increase of 1.7pc and an annual increase of 26pc. Lilongdian reported CNY2.449bn in Q2. 


The Malaysian aluminium electrolytic capacitor factories in Jiamei and Nichicon, are among the hardest-hit areas of the pandemic, as a result, electrolytic capacitor prices could continue to rise in August. 


The Chinese market has a 53pc share in the aluminium electrolytic capacitor sector with a global market size of CNY50bn. Four out of five aluminium capacitor production companies are in Japan, while most end-users are in China.



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