From the perspective of China's LED phosphor market, in recent years, thanks to the rapid development of the LED industry, the demand for LED phosphors has increased rapidly year by year, and the average annual sales growth rate is above 40%. In 2014, the total sales volume of LED phosphors in China reached 137 tons, a year-on-year increase of 42%.
Chart 1: China LED phosphor sales and growth in 2010-2014 (unit: ton, %)
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Source: Gaogong LED Industry Research Institute (GLII)
Since 2011, the demand for LED indoor lighting has increased rapidly, and its scale growth rate far exceeds other application fields. The rapid development of indoor lighting has rapidly increased the demand for phosphors capable of color temperature and high display, thus pulling red powder. The sales volume of green powder and green powder increased.
In 2014, the growth of LED phosphor sales did not bring about an increase in sales. On the contrary, in 2014, the sales volume of LED phosphors declined slightly. The annual sales volume was 800 million yuan, down 7.4% year-on-year. The decline in the sales volume of LED phosphors was mainly due to the continuous rapid decline in the price of LEDs. In the past two years, the average selling price of LED phosphors has dropped by more than 50% annually, especially yellow powder, and the price of some enterprises has dropped by as much as 80%. Last year, around 2 yuan / gram, this year fell to 1 yuan / gram.
Rao is so, GLII believes that the price of LED phosphors has not bottomed out, there is still room for decline, so in the next few years, LED phosphor sales will still show negative growth or zero growth.
There are three main reasons for the rapid decline in LED phosphor prices:
First, the early LED phosphor industry is a high-margin industry with high gross profit margins and a large price drop.
Second, some LED phosphors such as yellow powder and green powder have relatively mature production technologies and product performance. Therefore, the production capacity of enterprises in the industry continues to increase.
Third, the maturity of product production technology and performance has lowered the barriers to entry for the entire industry. A number of workshop-type enterprises have emerged at a time, which has disrupted the market to some extent.
Based on the above three reasons, the LED phosphor industry has completely started the price war.
In the case of a rapid decline in the price of yellow powder, companies in the industry have to turn their attention to the green powder and red powder market, which are relatively fast-developing and still relatively high in price, especially in the red powder market. Due to its expensive materials and difficult processing, red powder The complete set of production equipment relies on higher import costs, so the price has been at a relatively high level, and there are fewer companies entering the yellow powder and green powder market, and the competition is far less than the yellow powder market.
In 2014, the sales volume of red powder in the LED phosphor market accounted for more than 50%, reaching 56.8%, which has become the main source of income for Zhongda LED phosphors.
Chart 2 : China's LED phosphor sales scale distribution in 2014 (unit: % )
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Source: Gaogong LED Industry Research Institute (GLII)
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