The impact of rare earth prices on the LED industry

The first half of 2011, crazy skyrocketing products not only garlic, ginger, Chinese medicine, as well as comparable to the gold price of rare earth. At the beginning of July 2011, Ganzhou rare earth company Tb4O7 price reached 23 million yuan / ton; europia price is 30 million yuan / ton; dysprosia price reached 14 million 800 thousand yuan / ton. Compared to six months ago, these rare earth prices rose as high as 13 million yuan ~2700 yuan, the growth rate of the tongue.

Champoux consulting electronic industry analyst pointed out that the cause of skyrocketing prices, speculation business is on the one hand, another important aspect is the country in recent years has issued a series of policies on the earth. April 2009, Ministry of land and resources issued a total amount of rare earth mining control indicators, will further reduce the domestic rare earth production capacity. In November of the same year, the Ministry of Industry issued the "2009-2015 rare earth industry development plan", proposed to limit the export of rare earth industry in china. May 2010, the Ministry issued a "rare earth industry access conditions" (draft). In September of the same year, the State Council promulgated the opinions on promoting the merger and reorganization of enterprises, for the first time will be included in the list of key industries mergers and acquisitions. February 2011, the Ministry of environmental protection issued a rare earth industrial pollutant emission standards, improve the rare earth industry access threshold. In May 2011, the State Council issued the "State Council on promoting the sustained and healthy development of rare earth industry a number of opinions" aimed at promoting the healthy development of the industry.

According to the analysis of "Champoux consulting released 2010-2013 analysis Chinese LED product market and investment earnings report" pointed out that the rare earth as a strategic important materials widely used in chemical industry, machinery, metallurgy, petroleum, glass and other industries. Rare earth as an indispensable raw material in the LED industry, most of the energy saving light sources used in the world are related to it, of which the most used rare earth three color fluorescent lamp. Compared with the ordinary incandescent lamp, the energy saving rate of the three primary color energy saving lamp is as high as 80%, which is not easy to cause environmental pollution and has small color difference.

Vigorously promote the development of energy-saving emission reduction, green lighting today, the rise in the price of rare earth products will inevitably have a certain impact on the LED industry. As the direct downstream of the rare earth industry, the three primary colors fluorescent powder manufacturers are affected most. Rare earth prices bullish, resulting in a lot of manufacturers do not want to sell, resulting in some manufacturers can not buy fluorescent powder and shut down.

At the same time, energy-saving lamp product prices are also reasonable. For those in the March energy saving lamps on the project to win the bid for the enterprise, it is miserable, because the current cost of energy-saving lamps have been more than its current, the successful bidder is facing a huge risk of loss. (general consulting)

Recently, although rare earth prices downward trend, many manufacturers of rare earth began to take action to protect hard up the silver price, Baotou rare earth is issued in October 2011 19 announced to stop production of rare earth for a month to ensure that the price of rare earth, but in the LED industry is still not a small pressure.