In the beginning of 2021, what everyone in the industry did not expect is that the price of raw materials is rising faster than the temperature. Recently, due to the “supply shortage” factor, the prices of raw materials such as copper, iron, aluminum, and plastics have continued to rise; due to the collective closure of large global oil refineries, chemical raw materials have soared almost across the board…Affecting all industries of life including LED displays. Different price per day for raw materials, it is not a rise of 3 or 5 points, but a rise of 10% or 20%.
According to relevant monitoring agency data, since June last year, domestic commodities have continued to rise. According to CCTV Financial Report: Copper rose by 38%, paper rose by 50%, plastic rose by 35%, aluminum rose by 37%, iron rose by 30%, glass rose by 30%, zinc alloy rose by 48%, and stainless steel rose by 48%. Soaring 45%, IC rose 100%. At the end of February, with the constant increase of various forces, the rising tide of prices has become increasingly enchanting.
By the end of February this year, compared with before the Spring Festival, the price of copper has risen by 38%, alloy by 48%, aluminum price by 37%, iron ore by 30%, stainless steel by 45%, and glass by 30%. %, cartons have risen by 20%, foam packaging has risen by 15%, and plastics have risen by 35%…Many manufacturers have also reported that since the beginning of the year, the overall situation of industrial raw materials such as plastics, textile materials, copper, energy, electronic components, industrial paper, etc. The crazy price hikes completely disrupted the production plans of terminal manufacturers, and many production lines were forced to press the pause button.
As one of many electronic products, LED display screens were also deeply trapped in last year’s “price increase”, and it is even more difficult to stay out of the “surge” in the 2021. In October last year, the prices of RGB packaging devices, LED display driver ICs, PCB sheets, and even steel, plastic, glue and other upstream raw materials continued to rise. In November, copper clad laminate manufacturers launched another “price increase letter attack” with an increase of approximately At about 10%, this has an extraordinary impact on LED display products.
Last year, people in the LED display industry made predictions, saying that this wave of “price increases” in 2020 will not easily dissipate, and will continue into 2021. Now, at the beginning of the new year, the crazy price increase of raw materials such as copper, iron, aluminum, and plastics confirms last year’s forecast, or it will continue until 2022.
After the resumption of work in 2021, the price of LED display raw materials has soared by more than 30% year-on-year, and many LED display companies are facing severe cost pressures. On the other hand, with the improvement of overseas market conditions, some insiders predict that this March is expected to usher in an overseas upward adjustment. At the same time, as the market for ultra-high-definition LED products such as Micro/Mini LEDs has increased in volume, many LED display brands have gradually begun to increase product premiums, which has set off an upsurge of product upgrades in the industry. What is the trend of China’s LED display industry this year? Let’s see.
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