In July, The PCB Plant Announced The Price Increase. Is The LED Industry Ready?
- Jul 19, 2018 -

In the second half of the year, the traditional peak season of LED display industry is coming, and the market is also rising. But recently, the raw material market, which has been calm for many days, began to rise suddenly. From July, the big PCB plants, including the ohmwei electronics and the founding group, have issued a price rise notice, called the impact of environmental protection and cost.——LED PCB

Environmental protection and raw materials double pressure PCB manufacturers "lower head" price increases

With the continuous improvement of science and technology, PCB, known as the "mother of electronic products", has become a global industry with an annual output value of more than 50 billion US dollars as an indispensable component in the LED display industry. Although the importance of PCB to the LED display is self-evident, the serious environmental pollution problems in the process of production can not be ignored. Especially in the present situation of ecological and environmental problems, the green environmental protection has been paid great attention by the government, and the harsh environmental protection standards have been formulated. In order to respond to the government's call and realize the sustainable development of the industry, the major PCB manufacturers have made industrial adjustments to improve the production process. This not only directly improves the price of the products and the labor costs, but also lets some uncompetitive enterprises begin to withdraw, and the competition grid gradually has the bargaining power and environmental protection targets. And the capacity of the plant is tilted, leading to an increase in industry concentration.——LED PCB

In addition, the price of raw materials has also pushed PCB enterprises out of breath. The data show that the cost of PCB raw materials is about 33%, of which copper clad plate CCL accounts for 18% to 20%, copper foil is the main raw material for manufacturing copper clad plate, accounting for 30% (thick plate) and 50% (thin plate) of copper clad plate. Since the supply of copper foil, the price of various raw materials has continued to rise. Since the beginning of 2016, the price of PCB standard copper foil has risen by more than 50%. The copper foil processing fee and the effective copper clad plate are more than 100% and 50% higher than the original average.——LED PCB

At this point, under the double pressure of environmental protection and raw material prices, many large PCB factories began to "lower their heads" gradually, and chose to raise prices one after another. It is understood that from the end of 2017 Jiangsu Kunshan limit, to Zhuhai, Shanghai limit, and to now Shenzhen strict inspection, the entire PCB industry will be in this wave of rising tide after a new situation, the overall range is expected to be in the 20-30%.——LED PCB

The 5G era is coming, and the market is falling into the dilemma of "in short supply".

From the overall environment of the electronics industry, with the gradual entry of China into the 5G era, consumer electronics is facing a new round of development, and the demand for high frequency and high speed copper clad board will increase exponentially. Compared to communication, lithium battery and automobile industry, the technical requirements of the LED display industry are relatively low on PCB. At the same time, the shuffling of small and medium PCB enterprises leads to the overall capacity compression, and the big factory is generally betting on the future capacity in the communications, lithium battery and automobile industry, thus causing no small impact on the LED display industry.——LED PCB

Needless to say, the sharp rise in upstream raw material prices is bound to be unprepared for the downstream application LED display industry. As far as the present stage is concerned, the scene of the LED display market continues to rise, especially the small distance of LED is developing more quickly. The continuous market order not only brings profit to the LED display manufacturer, but also puts forward higher market demand to the raw materials. The rise in the PCB price and the intensification of the industry concentration not only bring the pressure on the LED display, but also break the original supply and demand balance, causing the market to fall into a dilemma in short supply.——LED PCB

It is also worth mentioning that, as the current PCB plate is the most upstream raw material copper foil, glass cloth and other conditions, such as shortage of goods, such as shortage of goods, naturally directly affect the delivery of PCB suppliers, compared to the raw material prices, tension is to let the upstream and downstream manufacturers have no policy. The raw material price rise storm, began to let those in the economy and the scale of the LED display screen enterprises do not compete gradually, to further accelerate the speed of trade shuffling.——LED PCB

Looking for the sustainable development route of enterprises from the "price war"

The competition in the LED display market is still fierce, and some enterprises with powerful and competitive strength have begun to move away from the "price war" and begin to transfer the battlefield to the high-end display field. For this part of the LED display manufacturers, the upstream raw materials will increase the price of LED display products, because their customers pay more attention to the quality and service of the product than the price. Which is still hard to practice "internal work", in the "price war" LED display manufacturers, facing the price increases, in order to maintain the original price of the original product, in order to maintain the original price of the product, it can only "drop teeth and blood swallowing", no matter how much upstream, can only quietly digest, this is the capital of the enterprise is a A great test is definitely not the long-term road of enterprise development.——LED PCB

Before the price rise of PCB, there is a market demand for the top 100 billion LED display market, and the LED display enterprise wants to get the wind and wave. It also needs to think about the long-term development of the enterprise, not to knock the price of the product, and to strengthen the competitive strength of the enterprise from its own technologies, products, brands and channels. A higher profit margin.——LED PCB

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