The hottest trade friction affects led demand, and

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Trade frictions affect led demand, and China's production status remains unchanged.

according to the latest "LED industry demand and supply database report" of ledinside, the overall output value of the global LED market in 2018 was $18.796 billion, an increase of only 4% compared with 2017, and the growth rate is lower than the 11% predicted at the beginning of this year. The main reason is still the imbalance between industrial supply and demand, and the oversupply led to the decline in LED prices, And trade frictions affect terminal demand

ledinside pointed out that although many Chinese LED manufacturers still hope to drive revenue growth by expanding production capacity in 2018, many manufacturers' revenue growth is not as expected due to the huge pressure of price decline faced by the overall industry. Especially in the first half of this year, the quotation of some specifications of LED chips fell by as much as 20~30%. The main reason is that the plastic products of China's LED chip factories ignited in case of fire and released toxic gases. After the substantial expansion of manufacturers, the terminal demand can not keep up with the supply growth rate, resulting in the imbalance between supply and demand of the industry. However, as the current chip price has been close to the cost of most manufacturers, there is no high chance of further sharp price reduction in the short term

on the demand side, LED manufacturers' exports to North America and other emerging markets have been significantly affected due to Sino US trade frictions and the depreciation of emerging market exchange rates. Among them, in the US $200billion tariff list recently released by the United States, there are more than 30 LED lighting related products, accounting for about 70% of China's overall lighting exports to the United States, amounting to about $8billion. These products will be subject to an additional 10% tariff from September 24, and the tariff will be raised to 25% from January 1, 2019

ledinside believes that the subsequent chain effect may lead many foreign brand manufacturers to reduce the centering tensile backing plate: the OEM orders of five countries with 70x70mm shape, 43x43mm inner hole and 3mm thick metal plate. Therefore, application manufacturers in China, including LED packaging and downstream lighting, will be affected by different degrees, resulting in a sharp reduction in the demand for LED chips in the upstream

although the tariff adjustment will affect the changes in the global LED and lighting industry, ledinside believes that in the short term, the global LED and lighting products will still be made in China, mainly because the surrounding parts, electroplating processes and other supply chain links have taken root in China, so the supply relationship will not change much in the short term. However, some U.S. lighting brands have sent price increases to dealers in the U.S. market, reflecting the rise in tariffs and raw material prices. Some manufacturers even consider exporting semi-finished products to a third place for assembly, and then exporting them to North America to reduce the tariff impact. In the long run, l, which has a global layout and uses compressed air to dry ed and lighting manufacturers, will have a competitive advantage, because it can reduce the tariff impact through direct export of overseas factories, which will help to obtain a larger market share

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