Rising aluminum costs may drive up electrolytic capacitor quotes

Taiwan-based passive component makers may raise their quotes for aluminum electrolytic capacitors as the costs of aluminum film supply from China have been driven up by increased electricity rates in China, according to the Chinese-language Economic Daily News (EDN).

As the processing of aluminum consumes a large amount of electricity, the new electricity rates, implemented in December, have driven up the costs of the capacitors by 5-20% depending on the size of the capacitors, the paper said, adding that the makers will try to convince their clients of the need to raise their quotes despite the fact that it will be the slow season in the first quarter.