September 2019 Passive Electronic Component Monthly Market Report

September 2019 MARKET UPDATE:

• Nickel Prices Increase Sharply- Up 41% Since July RED FLAG- Indonesia Landslide; Fire at BHP Plant, Trade Tensions and Battery Speculation Drive Up Price;

• Palladium Prices Also up Sharply- Up 21% Since August RED FLAG- Labor disputes in South Africa Impacting “Platinum Belt”- Expect Higher Pd Prices;

• Ruthenium Price Remains Elevated at $246 Per Toz RED FLAG- By Product of PGM Mining in SAF; also Affected by Same Labor Disputes as Palladium.

• Capacitor, Resistor and Inductor lead times all weakened in September 2019

• An unusual Spike in Demand noted for High Voltage Axial and Radial Ceramic Capacitors, High Voltage Snubbers and High Voltage Tin Oxide Resistors Indicating Increased demand from Defense and Industrial/Renewable Segments In September.

• Competitive Analysis Estimates 0-3% Growth for September Quarter Due To MLCC Price Model Shift and Market Seasonality; Higher Metals Prices May Impact MLCC and TFT Pricing or Profitability.