Price rising tide of LED panel light: the cost of LED panel light manufacturers soared, only because of the soaring price of raw materials

///Price rising tide of LED panel light: the cost of LED panel light manufacturers soared, only because of the soaring price of raw materials

Price rising tide of LED panel light: the cost of LED panel light manufacturers soared, only because of the soaring price of raw materials

Since the second half of 2020, the supply of raw materials has become tight, and the price has begun to rise rapidly. Many manufacturers have announced price increases of some or all products one after another, and the LED industry has also ushered in a “price surge”.
According to incomplete statistics, more than 20 large lighting enterprises announced price increases in May 2021 alone.
On May 12, OSRAM issued a price adjustment notice to its customers in China, saying that due to the rising prices of global supply chain services and raw materials and the shortage of supply, the cost of the company’s various businesses increased significantly, and decided to adjust the price of products: traditional ballast products increased by 20%, LED power supply and module products increased by 10%. The new price will take effect on May 25, 2021.
Rex lighting also issued the notice on price adjustment of Rex lighting products to dealers at all levels at the end of April, saying that due to the impact of the epidemic, the global supply is tight and the price of raw materials in the market rises sharply, and the price of all products will be adjusted from May. Before that, Rex lighting had adjusted the price of some products.
MuLinSen recently revealed that the company’s product prices have increased by 20% – 30% this year.
The prices of packaging, chips, driving ICs, light sources, lamps, accessories and other products in the upper, middle and lower reaches of the LED industry chain have almost risen in an all-round way. Neither large enterprises nor small and medium-sized enterprises can stay out of the business.
Since 2021, the price of raw materials has been rising continuously, and the pressure of price rising is transmitted to downstream manufacturers, which objectively leads to the price rise of LED purification panel lamps of many manufacturers for many times. However, customers may not be able to bear such a large increase, so now some lamp manufacturers have begun to reduce production capacity to cope with the cost pressure brought by the soaring raw materials.
It is understood that in the first quarter, the prices of copper, plastics, aluminum, iron, glass, zinc alloy, stainless steel, IC and other raw materials used in the lighting industry rose to varying degrees, and some raw materials even rose as high as 100%.
Riyuecheng technology, a manufacturer of LED driving power supply, said that due to supply chain problems, the price will rise a wave this year and may continue to rise in the future“ After the price rises, the scale of production capacity may not be so high. But raw materials are going up, and we can’t help it. Everyone is going up. ”
Some manufacturers choose the business strategy of “ensuring production capacity and supplementing price”. Another high-level power company revealed that the price of its power products did not rise. The shipment volume in the first half of the year was much higher than last year, but the profit was not as good as last year“ This year, IC has increased by more than 50%, and we have not increased the price under pressure, so the overall profit is not particularly good. ”
Although the shipment performance is good, he also admitted that it is not a long-term solution to reduce the manufacturing cost only by expanding the production scale“ At present, we will try our best to expand the production capacity of products with good profits in the field of landscape lighting and industrial control. But if the price rise of the industry does not improve in the short term, we may have to choose to increase the price. ”
It is worth mentioning that at present, led enterprises are suffering from the profit problem caused by the continuous rise of the price of bulk raw materials, but also the complex international market environment. The two industry insiders said that since the beginning of this year, the overseas market has a large order volume and good profit performance. However, due to the repeated epidemic situation, more customs clearance procedures for products, less shipping and other problems, many overseas orders can not be delivered.
It seems that the “rising price tide” which has lasted for some time has not yet subsided. This “rising price tide” may be a protracted war. In this case, the cooperation and mutual assistance between enterprises in the industrial chain is particularly important.

2021-05-22T15:08:06+00:00May 22nd, 2021|