Resistors and Raw Materials: New Insights Shed Light on Key Commodities

After a turbulent few years, the resistor market has stabilized for the second half of 2022.

Signs of stable prices and short lead times

According to the latest findings from Supplyframe Commodity IQ, leading resistor manufacturers plan to maintain current prices for the foreseeable future. Already-elevated resistor pricing will flatten in Q3 and Q4 on inflated inventories and lower material costs. Precious metal ruthenium, which employs? thick-film chip resistors, has decreased in price and is holding steady at $600 per troy ounce.

Shorter and more consistent lead times and increased component inventories are easing price pressures. Like other passive components, the resistor supply base is experiencing customer order push-outs, and even cancellations as those customers cannot complete their bill-of-materials as they await shipment of constrained semiconductors.

Pricing and technological change on the horizon

However, looking ahead beyond 2022, the new data indicates that volatility in raw materials, along with emerging new innovations, could shake up the market in the future. Prices continue to be elevated and volatile in materials like nichrome and tungsten wire, manganin, copper-nickel alloys, copper manganese alloys, graphite, carbon/ceramic composites, and metal oxide.?

Extreme fluctuations may result in? increasing resistor prices in early 2023. Meanwhile, many resistor manufacturers are investing heavily in the development of current-sense and thin-film resistors due to the high margins associated with these products. We will likely see the results of these investments in new factories and materials to increase production capacity in Q4 and early 2023.??

Stay informed with up-to-date market intelligence

As the resistor market continues to grow and change over the coming months and years, commodity managers and sourcing professionals must stay informed and ahead of the curve. Visibility into the resistor market and other key commodity groups is key as circumstances like pricing and lead times are ever-changing.

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