The price of raw materials has skyrocketed, the cost of LED lighting manufacturers has skyrocketed, and the price of purification panel lights has risen sharply
In the second half of 2020, the supply of raw materials for production was tight, and prices began to rise rapidly. Many manufacturers announced price increases for some or all of their products one after another, and the LED industry also ushered in a "price increase".
According to incomplete statistics, in May 2021 alone, more than 20 large lighting companies announced price increases
On May 12, Osram issued a product price adjustment notice to its customers in China, saying that due to the increase in global supply chain services and raw material prices and shortage of supply, the cost of the company's various businesses has increased significantly, and it has decided to adjust the product price: Traditional ballast products have a maximum increase of 20%, and LED power supply and module products have a maximum increase of 10%. The new prices will come into effect on May 25, 2021.
NVC Lighting also issued the "Notice on Price Adjustment of NVC Lighting Products" to distributors at all levels at the end of April, saying that due to the impact of the epidemic, global supply has been tight and the market raw material prices have risen sharply, and the price of all products will be adjusted from May. Adjustment. Prior to this, NVC Lighting had adjusted the price of some products.
Mulinsen also revealed recently that the price of the company's products has risen by 20%-30% this year.
The prices of packaging, chips, driver ICs, light sources, lamps, accessories and other products in the upper, middle and lower reaches of the LED industry chain have risen in almost all directions, and neither large enterprises nor small and medium-sized enterprises can stay out of it.
Since 2021, the sound of rising raw material prices has not stopped, and the pressure of rising prices has been transmitted to downstream manufacturers, which has objectively caused the prices of LED purification panel lights of many manufacturers to rise many times. However, customers may not be able to withstand such a large increase, so now some lighting manufacturers have begun to reduce production capacity to cope with the cost pressure caused by the skyrocketing raw materials.
It is understood that in the first quarter, the prices of raw materials such as copper, plastic, aluminum, iron, glass, zinc alloy, stainless steel, and IC used in the lighting industry have risen to varying degrees, and some raw materials have risen by as much as 100%.
LED driver power supply manufacturer Riyuecheng Technology said that due to supply chain problems, prices will rise 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 we can't do anything about the rise in raw materials, everyone is rising."
There are also manufacturers who have chosen the business strategy of "guaranteeing production capacity and supplementing prices". Another power supply company executive revealed that the price of its power supply products has not increased. 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. "IC has risen by more than 50% this year, and we have not raised prices under pressure, so the overall profit is not particularly good."
Although the shipments performed better, he also admitted that it is not a long-term solution to reduce manufacturing costs only by expanding the scale of production. "At present, we will try our best to expand the production capacity of more profitable products in the field of landscape lighting and industrial control. However, if the price increase in the industry does not improve in the short term, we may only choose to increase the price."
It is worth mentioning that, at present, LED companies are suffering from the difficulty of making profits caused by the continuous rise in the price of bulk raw materials, and at the same time they are also suffering from the complicated international market environment. The above-mentioned two industry insiders said that since the beginning of this year, the overseas market has had a large number of orders and a better profit performance. However, due to repeated epidemics, many customs clearance procedures for products, and few cargo ships going to sea, many overseas orders could not be delivered.
The "price surge" that has been going on for a period of time does not seem to have subsided, and this "price surge" may be a protracted battle. Under this circumstance, cooperation and mutual assistance among enterprises in the industrial chain are particularly important.
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