Rare earth prices to accelerate the deployment of traditional lighting companies LED

Since 2010 (including energy-saving lamps and fluorescent lamps), LED devices in the production of important raw materials of rare earth prices rose sharply, the highest rate reached 124%, the current price is still in sharp fluctuations in. In this regard, we light lighting appliance Co., Ltd. Wang Wanchuan, general manager of the analysis, the future of rare earth and other raw materials prices will continue to rise. Because of the rare earth is an important raw material of the fluorescent powder, and fluorescent lamps, energy-saving lamps, LED package is used in the fluorescent powder, so the prices brought about by the chain reaction will bring greater impact on related industries.

According to statistics, 80% of the world's energy-saving lamps are produced in China, at present, China's energy-saving lamps and related enterprises of more than 3 thousand, with an annual output of more than 3 billion energy-saving lamps, is a veritable energy-saving lamps global manufacturing center. But the high-end market is basically occupied by GE, PHILPS and other foreign brands, Chinese manufacturers are mostly hovering in the low-end market, meager profits. The domestic rare earth prices are bound to consume a large number of Chinese enterprises have not been high energy saving light profit. In addition, the price of raw materials continues to be volatile, will exacerbate market risk, large enterprises can still vertically integrate resources through the upstream and downstream industry chain, and even through the accumulation of rare earth, defuse some of the risks. For small scale, weak market operations, the ability to resist risks of the impact of the formation of the enterprise will be greater.

Although one of the important raw materials of rare earth and LED lighting products, but as a new product, the profit of the current LED lighting is still relatively high, basically in 30% above, but from a cost point of view, although rare earth and metal materials prices will rise year by year, but the main part of LED lighting products accounted for the cost of the chip price show a declining trend, can offset the price factor. In this case, is expected to have more companies to accelerate the field of LED lighting products.

In fact, in recent years, most of the traditional lighting companies began to invest in the production of LED lighting products, but the intensity of different sizes. However, with the increase in the price of rare earth and other raw materials, the traditional lighting market competition further intensified, so that more companies recognize the transition to LED is the trend, is expected to accelerate the process. For example, in the LED project, the main domestic lighting companies announced that this year plans to invest about 1 billion yuan to develop its LED cause. The day before Yankon 1 million 237 thousand and 600 yuan to hold Japanese LIREN 30.188% stake in the company, which is an important measure to LED layout.

However, it should be noted that, of course, the factors of raw material prices will bring large enterprises in the field of traditional lighting into the LED lighting industry, but also will drive more small businesses to join the LED market. At present, the semiconductor lighting industry has been facing many enterprises, small scale, lack of technological innovation ability, the majority of enterprises concentrated in low-end market, low level repeated competition, accelerate the influx of traditional lighting companies, will make the competition become more intense.

But this situation can also be understood from another point of view, the rare earth as the representative of the price of raw materials has become represent the general trend of iron and aluminium, copper in 2011, glass and other raw materials, the cost of labor costs, utilities, land rent are rising again and again. These are the driving factors of China's LED lighting enterprises to accelerate industrial restructuring and upgrading. Chinese LED companies if repeat the traditional lighting industry is only concentrated in the production of low-end products, low profit, low level of vicious competition is no way forward. Because in the past, China's low-end manufacturing industry rely on the survival of low-cost labor environment is changing. China's LED industry is committed to enhancing the ability of scientific and technological innovation, accelerate industrial upgrading, there is hope of development. As premier Wen Jiabao at the National People's Congress said a reporter asked the sentence, "the revitalization of China not only in the total economy, there is still talent and scientific and technological progress, the key Chinese semiconductor lighting industry is the high technology talents of mass culture and enterprise innovation ability enhancement. Therefore, from this perspective, the price of rare earth, perhaps to promote China's semiconductor lighting to a new path of development opportunities.