Description
XN-P3T-SBB Micro innovative touch screen
XN-P3T-SBB Micro innovative touch screen
Module Clips Drive controller servo motor
Contact: Mr. Lai
Wechat:17750010683
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The cost of upstream raw materials such as PCB continues to rise. The procurement cost of LED raw materials has also begun to rise. Foreign companies have increased the prices of lighting products.
Starting in July, major PCB manufacturers in the industry, including Omway Electronics and Kingboard Group, have issued price increase notices. Under the dual pressure of environmental protection and rising raw material prices, more and more major PCB manufacturers are “bowing their heads” and choosing to increase prices. The entire PCB industry will also usher in a new situation after this wave of price increases, with the overall price increase expected to be 20%-30%.
Due to the double pressure of environmental protection and raw materials, PCB factories have no choice but to follow the rise.
The importance of PCB to electronic products is self-evident, but the serious environmental pollution problems caused by it during the production process cannot be ignored. Especially at the moment when ecological and environmental problems are prominent, green environmental protection has received great attention from the government and has formulated strict production and environmental protection standards. In order to respond to the government’s call and achieve sustainable development of the industry, major PCB manufacturers have made industrial adjustments and improved product manufacturing processes. This not only directly increases the price of product accessories and labor costs, but also leads to an increase in industry concentration.
At the same time, rising raw material prices have also made PCB companies breathless. Data shows that the cost of PCB raw materials accounts for approximately 33%, of which copper-clad laminate CCL accounts for 18% to 20%. Copper foil is the most important raw material for manufacturing copper-clad laminates, accounting for approximately 30% of the cost of copper-clad laminates (thick plates ) and 50% (thin plates). Due to the shortage of copper foil, the prices of various raw materials continue to rise. From the beginning of 2016 to the present, the price of PCB standard copper foil has increased by more than 50%. The copper foil processing fee and the effective copper-clad laminate selling price are higher than the original average levels respectively. 100% and 50%.
Under the dual pressure of environmental protection and rising raw material prices, many large PCB factories began to gradually “bow down” and chose to increase prices one after another. It is understood that from the emission restrictions in Kunshan, Jiangsu Province at the end of 2017, to the emission restrictions in Zhuhai and Shanghai, and now the strict inspections in Shenzhen, the entire PCB industry will usher in a new situation after this wave of price increases. The overall range is expected to be 20 -30%.
It can be seen that as the price of PCB boards continues to rise, some uncompetitive companies have begun to withdraw, and the competitive landscape has gradually tilted towards large manufacturers with bargaining power, environmental protection indicators, and production capacity reserves, leading to an increase in industry concentration.
At present, my country’s manufacturing industry is in the stage of transformation from low-end processing to high value-added manufacturing. Measures such as rising material prices, environmental protection rectification, and strengthening restrictions on enterprises paying taxes according to law are all powerful measures to reduce backward production capacity. Although enterprises are experiencing pain, upgrading is inevitable for all walks of life.
Forcing LED display companies to increase prices
As the cost of upstream raw materials such as PCB continues to rise, the procurement cost of LED raw materials has increased. Recently, LED display companies have also issued price increase notices.
On July 25, Leyard issued a price adjustment notice, saying that due to the rising cost of upstream raw materials, the procurement cost of LED raw materials has increased. In order to adapt to the demand of the LED display market, it has decided to increase the current price for the full range of indoor and outdoor products from now on. The selling price will be adjusted accordingly.
On July 26, Fujian Haijia Cailiang Optoelectronics Technology Co., Ltd. also issued a product price adjustment notice, deciding to adjust the selling prices of P series, D series, and A series products on the basis of the existing prices starting from August 1.
For LED display companies, this round of price increases is not only caused by industry pressure, but also a proactive strategy by the companies. On the one hand, the price increase of raw materials has exceeded the range that manufacturers can bear, and companies need to increase prices to ensure the quality of products; on the other hand, the industry needs to return to the level of rational competition, and proactive price increases are undoubtedly a good beginning.
Therefore, it is understandable for LED display companies to implement price increases, and it will even cause the price of the entire LED market to rise accordingly, pushing the LED display industry to get rid of the vicious competition of “low price” and move towards healthy price competition. In addition, “price increases” will also accelerate the reshuffle of the LED display industry. Those companies that lack innovation will either be eliminated or upgrade their products and take an innovative development route.
Lighting products of foreign companies have increased in price
As the costs of metal materials, raw materials, freight and parts continue to rise, Eaton’s lighting division will increase the prices of traditional lighting products as well as high-end LED and control products. The range varies depending on the product type. Products with a high proportion of metal materials may increase by more than 6%.
This adjustment of Eaton Lighting will be implemented on July 16 this year. It also stated that due to continued changes in the material market and government regulations, Eaton Lighting reserves the right to change the implementation time and price increase.
LEDVANCE also announced a price increase notice. The price of traditional products will increase by 6-8%, while LED prices will not increase for the time being. Matt McCarron, vice president of trade sales for the U.S. and Canada, told customers in a letter: “Advances in solid-state lighting (SSL) technology are having a dramatic impact on the lighting industry. The rapid expansion of SSL across all lighting products has made traditional lighting products Sales volume has dropped significantly. As a result of this shift, the number of traditional lighting products has decreased, resulting in a loss of economies of scale and ultimately an increase in the cost of traditional products.”
In addition, some major American brands have issued similar statements in recent weeks, including Acuity, Eaton and Venture.
Judging from the price increases given by the above LED manufacturers, in addition to the 25% tariff increase on some lighting components exported from the United States to China, the increase in raw material prices is an important factor in the price increase of these manufacturers’ lighting products.
Domestically, lighting companies have continued to suffer from rising raw material prices since last year. Today, the continued shortage of PCB upstream materials and semiconductor upstream materials silicon wafers has driven up raw material prices. Coupled with the country’s increased efforts to improve environmental protection, domestic lighting manufacturers are facing huge pressures from price increases and shortages.
As the prices of domestic raw materials continue to rise, will domestic lighting companies also follow the price increases like foreign companies? We’ll see!
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1.Has been engaged in industrial control industry for a long time, with a large number of inventories.
2.Industry leading, price advantage, quality assurance
3.Diversified models and products, and all kinds of rare and discontinued products
4.15 days free replacement for quality problems
ABB — AC 800M controller, Bailey, PM866 controller, IGCT silicon controlled 5SHY 3BHB01 3BHE00 3HNA00 DSQC series
BENTLY — 3500 system/proximitor, front and rear card, sensor, probe, cable 3500/20 3500/61 3500/05-01-02-00-001 3500/40M 176449-01 3500/22M 138607-01
Emerson — modbus card, power panel, controller, power supply, base, power module, switch 1C31,5X00, CE400, A6500-UM, SE3008,1B300,1X00,
EPRO — PR6423 PR6424 PR6425 PR6426 PR9376 PR9268 Data acquisition module, probe, speed sensor, vibration sensor
FOXBORO — FCP270 FCP280 FCM10EF FBM207 P0914TD CP40B FBI10E FBM02 FBM202 FBM207B P0400HE Thermal resistance input/output module, power module, communication module, cable, controller, switch
GE —- IS200/215/220/230/420 DS200/215 IC693/695/697/698 VMICPCI VMIVME 369-HI-R-M-0-0-E 469 module, air switch, I/O module, display, CPU module, power module, converter, CPU board, Ethernet module, integrated protection device, power module, gas turbine card
HIMA — F3 AIO 8/4 01 F3231 F8627X Z7116 F8621A 984862160 F3236 F6217 F7553 DI module, processor module, AI card, pulse encoder
Honeywell — Secure digital output card, program module, analog input card, CPU module, FIM card
MOOG — D136-001-007 Servo valve, controller, module
NI — SCXI-1100 PCI – PXIE – PCIE – SBRIO – CFP-AO-210 USB-6525 Information Acquisition Card, PXI Module, Card
Westinghouse — RTD thermal resistance input module, AI/AO/DI/DO module, power module, control module, base module
Woodward — 9907-164 5466-258 8200-1300 9907-149 9907-838 EASYGEN-3500-5/P2 8440-2145 Regulator, module, controller, governor
YOKOGAWA – Servo module, control cabinet node unit
Main products:
PLC, DCS, CPU module, communication module, input/output module (AI/AO/DI/DO), power module, silicon controlled module, terminal module, PXI module, servo drive, servo motor, industrial display screen, industrial keyboard, controller, encoder, regulator, sensor, I/O board, counting board, optical fiber interface board, acquisition card, gas turbine card, FIM card and other automatic spare parts
