China Lighting Industry Export Bulletin, October 2020: Exports in October continued the strong growth trend, setting the stage for a new annual record.

In October 2020, the export value of China's lighting industry reached USD 4.953 billion, a year-on-year (YoY) increase of 38.38%, marking five consecutive months of double-digit growth since June. Among them, the export value of LED lighting products was USD 3.499 billion, a year-on-year (YoY) increase of 41.55%. It has seen positive growth for six consecutive months since May, representing the largest single-month year-on-year increase this year.

Monthly data shows that exports in January remained basically stable before the outbreak of the pandemic; February was the most severe period of the domestic epidemic, with production and supply chains facing significant obstacles, characterized by orders being difficult to fulfill, causing data to hit rock bottom; in March, as the domestic epidemic situation stabilized, enterprises gradually resumed work and production, leading to an improvement, with a clear rebound in overall lighting exports; from April to May, production and supply chains further recovered, and previously backlogged orders entered the execution and release phase, thus narrowing the decline further; until June to October, five consecutive months achieved double-digit growth. Meanwhile, since July's monthly export value exceeded $5.6 billion, the strong momentum has slightly eased.

From January to October 2020, the cumulative export value of China's entire lighting industry reached USD 40.375 billion, a year-on-year (YoY) increase of 8.79%. Among them, the cumulative export value of LED lighting products from January to October was USD 26.96 billion, a year-on-year (YoY) increase of 9.95%.

According to data from the General Administration of Customs, China's goods trade Export value reached 1.62 trillion yuan in October, a Year-on-year (YoY) increase of 7.6%, with the growth rate declining for three consecutive months; measured in US dollars, it was $237.2 billion, a Year-on-year (YoY) increase of 11.4%. From January to October, the cumulative total Export value of China's goods trade was 14.33 trillion yuan, a Year-on-year (YoY) increase of 2.4%; measured in US dollars, it was $2.05 trillion, a Year-on-year (YoY) increase of 0.5%, marking the first positive growth in cumulative Export value measured in US dollars this year. Lighting Exports have outperformed the overall market for four consecutive months since July.

In October, Export continued the positive momentum seen since the second half of the year. With the overseas pandemic remaining severe and resurgences in many countries, exports of epidemic prevention and stay-at-home economy-related products, such as scientific research and medical lighting, UV lamps, and Horticultural lighting products, maintained growth. Markets in North America and Asia-Pacific are gradually recovering, with marginal improvements in external demand and relatively stable order volumes. Chinese manufacturing, having resumed production and work earlier, has further highlighted its advantages in production and supply chains, effectively filling the global supply gap caused by widespread停工停产 due to the pandemic. The "substitution and transfer effect" on exports to other countries continues to manifest.Over the past ten months, cumulative exports in the lighting industry have exceeded $40 billion, achieving nearly 9% growth. Based on this, and combined with the order backlog of relevant exporting companies, it is certain that full-year Export will achieve positive growth, with total export volume reaching a historic high.

A notable issue at present is: The recent significant fluctuations in the RMB-to-USD exchange rate have had a major impact on the profits of export enterprises. Additionally, some companies, facing pandemic challenges and industry competition, have intensified low-price competition to seize market share at the expense of profits. Meanwhile, it can be observed that after the monthly export value hit a record high in July, export values in the following months declined slightly. On one hand, the growth rate of pandemic-related items has slowed down, weakening their driving effect on overall exports; on the other hand, as some countries resume work and production, their supply capacity is gradually recovering, which will weaken the "substitution and transfer effect" of China's exports to other countries.