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Price increasing , LED industry return to healthy development?

  • Source:net
  • Release on :2016-09-02
     Shenzhen Risen OPTO Co.,Ltd,LED Flood Light Manufacturers,led wall washer light suppliers,led smd 5730 flood light.
      In March this year, Mu Linsen, crystal stage and other parts of the package manufacturers part of the price of a certain increase in prices. Then in May it was reported that, EPISTAR, Saman and other LED chip manufacturer for the corresponding price adjustment on the part of the chips.
      Since August, LED industry has swept the prices of wind. Speaking from the upstream chip, Sanan optoelectronics, HC semitek line chip manufacturers have a price adjustment for the small size of the chip; then, the domestic packaging and leading Linsen nationstar but also on the part of display screen by LED package price hike; finally, this "price wind" naturally spread to the downstream the industry, in the end of August, ampire photoelectric, photoelectric and close to TRW and a number of enterprises have also LED screen on the part of the product price adjustment.
      I think that the current across the LED industry price rises for a time unable to stop.
First of all, the price is bound to the upstream chip business fluctuations in the whole industry chain, with the procurement cost of chip increases, midstream and downstream application package enterprises will be unable to bear the cost pressures, so there will be more enterprises and downstream enterprises to participate in the application package to price storm.
      Secondly, the second half of the year, the LED industry will gradually enter the peak demand season, which will pull the company's demand for LED materials. Last year, LED chain collapse in a few enterprises, expansion project plus three, Huacan, Linsen and other enterprises have not really put into operation, and enhance the capacity demand did not really achieve synchronization, so the price will not be able to avoid.
      Finally, after the 2015 storm, the "price war" can be said that most of the LED product prices continue to dip, the vast majority of enterprises is basically in the loss making. In particular, the chip industry, the price is almost equivalent to the cost price, there is no space for any price reduction. However, enterprises to survive ah, how to do it?!
      So, looking at the whole industry chain, the price of the wind is not a whim, but the demand for the healthy development of the industry. However, this stock price storm, LED circle but deep fried open pot, there is a decline in the price of the price, but also a bit like the.
      Of course, as to the underlying reasons for the surge in prices, OFweek industry research center that can be analyzed from three aspects.
       First, into the second half, the major companies are red in the performance, the performance of the year and the beginning of the year in the first set of the target;
Second, the price storm and a number of international large enterprises to adjust the business. PHILPS and OSRAM have been stripped of general lighting business, PHILPS focused on healthy lighting and commercial lighting, OSRAM will focus on automotive lighting, industrial lighting and special lighting; and GE recently announced its withdrawal from the market in Asia and Latin America, focused on North America, Europe and the Middle East market. The adjustment of the business of large international LED enterprises to the Chinese LED enterprises more opportunities.
Third, LED market demand in growth. From 2015 (1-6 months) and 2016 (1-6 months) LED product export data, the first half of 2016 compared to the same period in 2015 the amount of exports of LED products in the increase, and in the gradual upgrade.
To sum up, the price is the market choice. But I suggest that the parties should not be blindly optimistic about the capital, so as not to lead the industry chain to another mire.
Why?
       First, the data from the OFweek industry research center to see, although the LED market demand growth, but the momentum is not strong enough, which shows that the LED market is in a steady growth period. If the capital (expansion or want to LED transformation) of the intervention rate than the market growth rate, is bound to lead to a new round of overcapacity.
      In addition, from the current situation, the stock price of the wind is also possible that LED enterprise "cliques" approach. The price may further promote the LED industry reshuffle, a slight price increase upstream chip may have little effect on the first column of the enterprise, but some small businesses may be difficult to withstand the pressure.
But in any case, the price has been rising wind, LED industry production capacity will be further released, but also to guide the industry from the past price competition to the quality of the transition.
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