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Raw material prices become the industry's largest "Black Swan" event
    2016 along the way, the LED display industry can be described as "Shengsheng" endless, accompanied by small pitch LED display market, hot, by the cost of labor and as LED raw materials sapphire, aluminum, copper, gold and Silver stents, such as the impact of varying degrees of price increases, LED display companies have LED raw materials and products for price adjustment.
    On May 10, Taiwan wafer optoelectronic issue price adjustment contact letter, said that by the rising raw material prices and labor costs increase, part of the chip will be price increases, then the three-chip, "the first chip price increases, An optical power for the relevant small-size product prices by 10%, Huacan photoelectric products for its lower profits up 5%. Packaging plant aspects of wood Linsen raised the price of LED display beads 5%, 5% of the letter up to light the light beads, the country will show the full range of LED display device prices by 10%. Affected by the rising prices of upstream chips and packaging, on August 30, the Company announced the Notice on the Adjustment of Full-color Products of Surface-Mounted Products, which indicated that due to the increase of raw material prices of lamps and PCBs and the increase of labor costs, Color part of the full-color surface mount product prices, followed by the cause of Trina, Heraeus, United Cheng Fa, China glory and other display products related to 5% to 10% of the different rise. Short-term look does not seem to corpuscles trend.
    Commodity price fluctuations, is the embodiment of the role of market regulation. 2016 small pitch LED display market continues to hot, making the increased demand for raw materials, causing raw material prices, while the overall market rebound caused by the shortage of related products, coupled with labor costs also led to the relevant LED products and raw material prices Rise, the LED industry chain price along with "rising." Impact, the wave of raw materials, weak upper reaches of the small and medium-sized enterprises have a greater impact, prices, stock prices lead to increased financial pressure, and adhere to the original price squeeze will not squeeze the thin profit margins, in addition to raw materials out of stock , Making part of the lack of stockpile business can not get raw materials, companies are faced with the risk of downtime at any time. And the strength of large enterprises terminal relatively small, large enterprises because of the ability to mobilize funds, orders, and therefore have the ability to supply shortage or even rupture, the supplier will give priority to their supply or their own will be able to Complete the stocking in advance.
    In general, the strength of the LED display companies through the production of large-scale production and application of technological innovation to open up the market, its impact is minimal, and the strength of the weak LED display business or a new round of reshuffle. It is noteworthy that, by the "price" effect, companies pay more attention to enhance the value of products to "fight the price" approach to open up the market means the traditional far away, companies only in the value of the product to work in the market On an invincible position, in this sense, prices or become LED display industry innovation and orderly evolution of the internal evolution of the positive factors. 2016 industry a series of price events in terms of some surprising industry, a rational understanding of "price" the pros and cons, the LED industry is very necessary.