Guide: In the second half of the year, with the tightening of the domestic environmental protection rectification, the raw material PCB of the LED display industry has sent news of price increases.

In the second half of the year, with the domestic environmental protection rectification, the LED display industry upstream raw material PCB has sent price increases: July 4, including the world's largest PCB production capacity of the Jianye Group's Zhongxin laminated board company, and Shandong Jinbao and other land-based PCB indicator factories all reported that CCL news was raised in July. Vendors admit that because of the stricter environmental protection, the production cost will increase, and the price increase must reflect the cost trend.

As we all know, some accessories of LED display products, such as PCB boards, cabinets, etc., will cause relatively large pollution in the production process, and some small and medium-sized raw material suppliers are not in line with the current national environmental protection requirements, and have to be rectified. And industrial upgrading, which also indirectly increased the cost of these accessories. At the same time, the state has been carrying out supply-side reforms in recent years, and is committed to improving the profitability of industrial enterprises. Whether it is environmental protection upgrades or supply-side reforms, it will be continuous and long-term, which means that the price increase of such raw materials will continue.

In addition, the country began to conduct environmental audits for many electronic manufacturing and chemical materials industries, especially the new environmental protection tax this year, which further increased the production costs of enterprises. Therefore, some insiders predict that under the current increasingly strong environmental protection storm, there will be at least one wave of small and medium-sized PCB manufacturers facing the collapse of this year...

Of course, it will also have a profound impact on our downstream LED display industry, especially with the further development of small-pitch technology and the continuous upward movement of overseas and high-end markets. The demand for small-pitch LED industry has also increased, which has also driven the LED display industry to upstream raw materials. PCB board demand continues to be strong. The price increase of the PCB means that the relationship between supply and demand is once again out of balance, and raw materials are in a situation of short supply.

For many downstream LED display companies, they will face the problem of “stable delivery”. Of course, "beneficial" in the two years in the industry, the rising prices of raw materials, out of stock, many screen companies have become accustomed to, and will be ready to prepare for the goods in advance, can better cope with this storm, but such a The pressure on the screen enterprises will be slightly larger, and the financial strength of the screen enterprises is also a test.

In this constantly evolving market, LED screen companies want to perfectly absorb these pressures, focus on technology and product upgrades, continuously optimize brand and service capabilities, take the road to the ultimate development path, improve the value of products and solutions, and win greater Profit margins can well digest the pressure from rising raw material prices. What really hurts is the channel dealers and traders who do not produce their own products. Raw materials prices have risen, and display companies have to maintain the original price, or even cut prices to stabilize the market, which has severely squeezed the profit margins of channel dealers and traders, and even jeopardized survival. Once a new round of shuffling is initiated, such a business will most likely become abandoned.

Is it a crisis or an opportunity? Whether it is price hikes or price cuts, the market will always change. Only with a good hand can we maintain bargaining power and turn crisis into opportunity!