National Development and Reform Commission to "guarantee the price of stability", LED industry can gradually stop rising?
From raw materials, chips, drive ICs, devices, to displays, lamps, etc. , months of price increases, so that many LED enterprises, especially small and medium-sized enterprises suffering.
Now, the situation is expected to improve to some extent.
On July 19, the National Development and Reform Commission held a press conference to introduce the economic situation in the first half of the year. Among them, wan Jinsong, director of the price department of the National Development and Reform Commission, answered questions from reporters about commodity price trends.
According to reports, since mid-to-late May, the National Development and Reform Commission, together with relevant departments to closely follow up and monitor commodity price trends, jointly interview iron ore, steel, copper, aluminum and other key enterprises and industry associations, many times to the relevant trading centers, local and key enterprises to conduct joint research and special investigation, to urge enterprises to comply with the law and compliance operations, and continue to strengthen the period of spot market joint supervision. Organization to complete the first batch of copper, aluminum, zinc and other national reserves.
Wan Jinsong pointed out that the next step, the National Development and Reform Commission will organize the follow-up batch of copper, aluminum, zinc and other national reserves, pay close attention to abnormal fluctuations in market prices. We will continue to increase the joint supervision of the spot market, crack down on illegal and illegal price behavior such as price hikes and hoarding, and maintain normal market order.
The NDRC's move is expected to ease the pressure on the LED industry to face huge rising raw material costs.
Internal and external problems, LED industry collective price increases
Recently, LED industry by the outbreak, trade friction, inflation and other external factors, as well as supply constraints and other internal factors of the combined impact of the entire industrial chain has appeared to varying degrees of price increases.
Macro-economic environment changes, not overnight can be resolved, so do not mention. Among the factors of tight supply, the scarcity of metal materials is one of the important factors affecting LED prices.
In the LED industry, whether it is brackets, wires, structural parts, need to use a large number of copper, iron and aluminum and other metal materials. Recently, however, the prices of these bulk metal materials have skyrocketed and remained high.
And upstream price increases, through the industrial chain obviously transmitted downstream. Directly related components, including LED brackets, PCBs, thermal substrates, etc., have also seen persistent price spikes, while downstream manufacturers, under pressure from upstream price increases, have had to adjust the price of their product lines to maintain profitability.
In addition, the shortage of metal material supply and price increases, but also triggered the enterprise's hoarding behavior, which in turn further aggravated the shortage of metal materials, increased the price increase.
On the demand side, due to the impact of the epidemic, tele-education, telecommuting and other market demand is rising, mobile phones, computers, health lighting and other products related to the home economy demand also continued to rise. Global manufacturing capacity has already begun to concentrate on the Chinese market, coupled with the current volatile foreign outbreak, foreign manufacturers' production capacity has been greatly affected, and China has effectively controlled the outbreak, the rapid resumption of production and business activities, thus accelerating the global manufacturing capacity to the Chinese market, China's LED industry ushered in rapid demand growth.
However, the expansion of led terminal market size, but also increased the demand for raw materials, supply contradictions further intensified, the fire of price increases is also in the near future burned to the terminal display plant.
Among them, Liard said on May 17, "In view of the upstream major raw materials (semiconductor chips, beads, PCBs, etc.) increasing supply and relatively large cost increases, Liard will be from now on in the global overall increase in the ex-factory price of products." ”
Subsequently, power giant color, Abison, Zhouming and so on have also announced the appropriate adjustment of product prices.
The tide of price increases has spread to the whole industry.
NDRC", "supply and price stability" measures, the role of geometry?
Of course, there are positive effects.
On the one hand, the state's batch of copper, aluminum, zinc and other national reserves to the market will greatly alleviate the survival pressure associated with small and medium-sized enterprises;
In addition, not only metal materials into supply difficulties, wafer foundry capacity shortage also affects the supply of led key raw materials, such as 8-inch wafer production capacity is seriously inadequate, is leading to LED drive IC production capacity shortage, as well as rich electronics, microelectronics, set the north, Depu micro and other driving IC manufacturers continue to raise product prices, one of the important reasons, these have further exacerbated the raw materials to LED companies brought cost pressure, resulting in a single dare not connect, do not dare to do. It is urgent for relevant management departments to take measures to stabilize the market price of factors and maintain the normal business environment and supply and demand order.
Wan Jinsong also said that recently, steel, copper, aluminum and other prices from May's year-high decline of 3% to 14%. I believe that with the continued effectiveness of national price-stabilization measures, commodity prices will gradually return to a reasonable range, for raw materials, seriously squeezing profits of the LED industry, these measures may be able to alleviate the urgency. (Text: LEDinside Lynn)
