Paumanok Releases Year End Presentation on Global Passive Component Markets

Paumanok has released its December 2021 Monthly and Year End Report on the Global Passive Electronic Component and related raw material markets.

The 31 slide presentation shows the status of 54 types of capacitor, resistor and inductor products as we enter 2022. The report shows global markets weakening in December 2021, but overall demand remaining at elevated levels for almost every single product line.

December 2021 Highlights

• Capacitor lead times remained elevated, with spot increases on a month-to-month basis in December for specific product lines, but for the most part, demand remained unchanged from the November report.
• Resistor and Inductor lead times showed weakness in December on a month-to-month basis, but remained at historically elevated levels as the data in this attached presentation shows.
• All passive component product lines in the report show demand remains at elevated levels going into 2022.
• Also the pandemic has devastated advanced end markets supporting key ecosystems in USA, Western Europe and Japan that include aerospace, defense, medical Class III and oil & gas electronics.  These high value end-markets have been set back four years by the 2019 Pandemic and are expected to grow as the variants subside.
• Zinc Prices Skyrocket- Zinc prices skyrocketed on news that Myrstar, majority owned by Trafigura, announced they would idle their Aubry smelter of zinc in January 2022, this followed the announcement in October that Glencore would place its Portovesme zinc smelter on care and maintenance.   This will impact the cost to produce varistors, also known as MOVs.
• Other raw materials prices declined in December, with sharp noticeable downward adjustments in the price of tantalum and ruthenium owing to weakness in the tantalum capacitor and thick film chip resistor markets worldwide in December of 2021 as a combination of a strong holiday buying season for electronics was coupled with the fear of pandemic variants.
• Paumanok has upgraded its December quarterly global market forecast to show the passive electronic component market at the peak of its historical financial performance up by 1% from the banner September 2021 worldwide quarter, which was a monumental one for the industry.
• Paumanok forecasts that the market will dip down in the March 2022 quarter; which is a seasonal adjustment after the handset build for the December holiday season.  Handsets make up 55% of global passive component revenues for 2021.