LED full color screen enterprises usher in a difficult dilemma


LED full-color screens have become a dedicated product in the field of indoor and outdoor display. Recently, with the rise in the price of raw material PCB boards, LED full-color screen companies will usher in a new dilemma. Everyone understands that a rising tide lifts all boats, but it is difficult for many users to accept the increase in the price of LED full-color screens, and the profit margins of construction companies in various regions will be further compressed. Entering the second half of the year, the traditional peak season of the LED full-color screen industry is coming, and the market continues to rise.

However, in recent days, the upstream raw material market, which has been quiet for many days, has suddenly risen. Since July, major PCB manufacturers in the industry, including Omway Electronics and Kingboard Group, have issued price increase notices, saying that they are affected by environmental protection and cost. Influenced by the influence, companies choose to raise prices in desperation. With the advent of the 5G era, the market is once again trapped in the dilemma of "supply exceeds demand". From the perspective of the overall environment of the electronics industry, as China gradually enters the 5G era, consumer electronics is facing a new round of development, and the demand for high-frequency and high-speed copper-clad laminates will show exponential growth. . Compared with the communication, lithium battery and automobile industries, the LED full-color screen industry has relatively low technical requirements for PCB. At the same time, the reshuffle of small and medium-sized PCB companies has led to a reduction in overall production capacity. Large manufacturers generally bet on future production capacity in communication, lithium battery and The automotive industry, which has also had a considerable impact on the LED full-color screen industry.

There is no doubt that the sharp rise in upstream raw material prices will definitely catch the downstream application-side LED full-color screen industry by surprise. As far as the current stage is concerned, the prosperity of the LED full-color screen market continues to rise, especially the development of small-pitch LEDs. The continuous market orders not only bring profits to LED full-color screen manufacturers, but also raise higher requirements for upstream raw materials. Market demand. The rise in PCB prices and the intensification of industry concentration not only brought cost pressures to full-color LED displays, but also broke the original supply-demand balance, causing the market to fall into a dilemma of short supply again.

What's more worth mentioning is that due to the current shortage of delivery and shortage of raw materials such as copper foil and glass cloth, which are the most upstream PCB materials, this will naturally directly affect the delivery of PCB suppliers. Compared with the price increase of raw materials, The tight delivery time makes upstream and downstream manufacturers helpless. The storm of rising prices of raw materials has begun to make those LED full-color screen companies that have no competitive strength in terms of economy and scale gradually retreat, further accelerating the speed of industry reshuffle. Double pressure from environmental protection and raw materials PCB manufacturers "bow their heads" to increase prices With the continuous improvement of technology, PCB, known as the "mother of electronic products", as an unavailable component in the LED full-color screen industry, has become a global industry. The output value exceeds 50 billion US dollars.

Although the importance of PCB to LED full-color screens is self-evident, the serious environmental pollution problems it brings during the production process cannot be ignored, especially at the moment when ecological and environmental problems are prominent, green environmental protection has been highly valued by the government , has formulated strict production environmental protection standards. In order to respond to the government's call and realize the sustainable development of the industry, major PCB manufacturers have carried out industrial adjustments and improved product manufacturing processes. This not only directly increased the price of product accessories and labor costs, but also caused some uncompetitive companies to withdraw. , The competitive landscape is gradually tilted towards large manufacturers with bargaining power, environmental protection indicators, and production capacity reserves, leading to an increase in industry concentration. In addition, the price increase of raw materials has also made PCB companies breathless.

The data shows that the cost of PCB raw materials accounts for about 33%, of which CCL accounts for 18%~20%, and copper foil is the most important raw material for manufacturing CCL, accounting for about 30% of the cost of CCL (thick plate ) and 50% (thin sheet). 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 risen by more than 50%, and the copper foil processing fee and the effective copper clad laminate price are higher than the original average. 100% and 50%. So far, under the double pressure of environmental protection and rising prices of raw materials, many large PCB factories began to gradually "bow their heads" and choose to raise prices one after another.

It is understood that from the end of 2017 in Kunshan, Jiangsu, to the emission restrictions in Zhuhai and Shanghai, and now to the strict investigation in Shenzhen, the entire PCB industry will usher in a new situation after this wave of price increases. The overall rate is expected to be 20 -30%. Breaking away from the "price war" and looking for a sustainable development route for enterprises The competition in the LED full-color screen market is still fierce. Some companies with strong competitiveness have begun to break away from the "price war" and have begun to shift their battlefield to the high-end display field. For this part of LED full-color screen manufacturers, the rise of upstream raw materials will definitely bring about an appropriate increase in the price of LED full-color screen products, because their customers pay more attention to product quality and service than price.

For those LED full-color screen manufacturers who are still practicing their "internal strength" and are dying in the "price war", in the face of the current round of raw material price increases, in order to maintain the original price of the product, they can only "knock down teeth and "Blood swallowing", no matter how much the upstream rises, you can only digest it silently. This is a huge test for the company's funds, and it is definitely not the long-term path for the company's development. There was a PCB price increase before, and there will be tens of billions of LED full-color screen market demand in the future. If LED full-color screen companies want to ride the wind and waves, they need to think about the long-term development of the company in all aspects. In order to obtain higher profit margins, only by making efforts in various aspects such as its own technology, products, brands and channels to enhance the competitiveness of enterprises. .

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