It seems that not only the lack of stock is influencing certain components such as processors or graphics cards to become more expensive, but the increased price components too as stated by Nvidia’s CFO, and now we know that the increase in the price of Copper will further have an impact on the entire hardware and electronics industry in 2021.
Manufacturer of power supplies, who wanted to remain anonymous, revealed to the Igor’s Lab that although at the beginning of the year each ton of copper had a cost of 5,000 dollars, now the price has risen to 7,300 dollars per ton and suppliers of cables have increased their prices by 5 percent, while other vendor of components used to built power supplies also increased their prices by 6-8 percent cent.
“The cost of copper has risen to more than $ 7,300 per ton from the $ 5,000 per ton we were paying earlier this year. This price increase has a direct impact on wiring and components, so our Suppliers of raw material for cables have increased our cost by 5%, and also that of some other components (6-8%).
At the end of the year, the cost of cables will increase again, as well as other components such as In addition, half of our materials are paid for with RMB (Chinese yuan), which has a big impact against the dollar this year.
We have no choice but to accept increased costs that would directly affect our prices to the customer. The price would be adjusted in those shipments that are going to be made from January 2021 (since we need to buy all the materials in advance with higher costs than it was) “.
Taking into account the value of the dollar, which has been falling lately, and copper is expected to reach a price of $ 11,000 per ton, it is logical to expect that throughout 2021 prices may continue to rise.