Early in May, Luxlite, Epistar’s sole distributor in China, has sent out an announcement of price adjustment, listing a number of reasons for price increase, including continuingly increased raw materials and manpower costs.
Chinese LED chips manufacturers San’an Opto and HC Semitek followed suit Epistar’s lead in raising LED chip prices, which was considered as an early sign of recovery from the heated price war since 2014. Major LED package manufacturers including Smalit, Honglitronic, Xuyu Optoelectronics, and SAMSUNG have announced to raise price this week.
With costs of raw materials like circuit board, gold thread continuing rising sharply, many LED companies have to turn away from price war strategy in order to survive in the fierce industry competition. According to a report last week from Ofweek.com: in Q4 2016 so far, PVC price has raised 60%, plastic price raised 30%, aluminum price raised 30%, paper packaging price raised 30%, shipment cost raised 33.6%…the trend is expected to continue.