Recently, the export business of the
LED Lighting industry is booming. As European and American markets have certification requirements for products and chips, the threshold is relatively high, so mid-to-high-end chips are in short supply and prices continue to rise. In addition to power chips, the prices of raw materials including lamp beads and exterior structural parts are also rising.
In addition to rising costs, product prices are also due to strong market demand: on the one hand, overseas demand is improving; on the other hand, "domestic video surveillance demand is growing rapidly."
It is worth noting that, affected by the epidemic, the LED industry's market performance last year was not ideal. Among the 6 listed LED display equipment companies listed by Wind, only one company achieved a year-on-year increase in net profit in 2020, and the others all declined significantly compared with 2019. Looking at the performance of the past three years, it is rare to see a decline in overall performance in 2020.
As the world's major LED production base, the export data of my country's LED products also fluctuates greatly last year. According to data compiled by the LED Research Institute of Advanced Industry and Research (GGII), in February and March last year, the export value of my country's
Led Lighting products fell year-on-year. However, with the improvement of the epidemic situation, the export situation has begun to show a clear trend of recovery since April. Statistics from the General Administration of Customs show that from January to April this year, my country`s cumulative exports of lamps, lighting fixtures and their parts were 13.659 billion U.S. dollars, an increase of 79.6% year-on-year.
A person who has been engaged in the LED industry for a long time pointed out that overseas demand continues to improve and the domestic market has grown significantly, which will help the industry to boost its performance. However, under the influence of tight upstream chip supply and rising raw material prices, the supply chain security and cost control capabilities of small and medium manufacturers will encounter challenges, and the leading manufacturers will be the biggest beneficiaries of this round of market due to their strong bargaining power.
