Price hike wave strikes again? Multiple companies issue price adjustment notices
"After repeated research by the company, we have decided to raise our product prices by 30%. Of course, our sales volume will not decline due to the price increase." Zhang Bing of Shenzhen Chuangxiang Optoelectronics Co., Ltd. announced that, although prices are rising, the product quality and service of Chuangxiang Optoelectronics will be improved accordingly.
Shenzhen Chuangxiang Optoelectronics Co., Ltd. (hereinafter referred to as "Chuangxiang Optoelectronics") is a globally leading LED R&D manufacturer, and is a national high-tech enterprise integrating R&D, production, sales, and service.
Since the beginning of 2017, raw material prices in the LED industry have continued to rise as expected by industry insiders at the beginning of the year. According to industry analysis, after the Two Sessions, prices of raw materials such as PCB will continue to rise.
At the beginning of July, several companies including Shandong Jinbao, Jianqiao, Mingkang, Willbond, and Jin'an Guoji successively issued price increase notices for copper foil and copper clad laminates. The price adjustments were 1,000–2,000 RMB per ton for copper foil, 10 RMB per sheet for paper boards, 5 RMB per sheet for insulating fiberglass CCL, and 5 RMB per sheet for sheet materials.
At the end of July, several PCB companies including Fujian Mulinsen Lighting, Dongcheng Hongye, Morgan Electronics, and Haile Electronics issued price increase notices for circuit boards, with the increase being almost uniformly 10%.
Zhongcai Network reported that raw material prices rose last week, with LME aluminum and copper prices, the plastics price index, and the steel price index all increasing to varying degrees compared to the previous week. In early August, another LED supporting companies issued a new round of "Price Increase Notices." Affected by this, prices for small-pitch and LED lighting finished products may also be adjusted to varying degrees in the near future.
In recent years, with the continuous deepening of supply-side structural reform, prices of steel, aluminum, copper, polyester yarn, aramid, flame-retardant materials, coal, base paper, and especially packaging box paper have continued to rise in China. According to Zhang Bing's analysis, "This kind of price increase will directly affect the corresponding industrial chain products. Combined with rising raw material prices and increasing labor costs, enterprises do face certain pressure. This wave of raw material price increases has caused production costs to soar, making it hard to bear, with the situation being severe. Coupled with the approach of year-end, capital turnover is particularly difficult, bringing significant pressure to enterprise transformation."
Source: Compiled and organized by Gaogong LED, Lighting Merchant Frontline, and China Light Network.