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The price hike of LED lights products are expected to last in the year 2021

In recent months after Chinese lunar new year holiday, nearly all of the materials such as copper,steel,aluminum has soared to an incredible level line which might still be climbing in coming months. 

Facing the upward price trend for raw materials,the prices of led lights are expected to increase by about 0.3%-2.3% QoQ in 2Q21. It is estimated that this bullish trend in the LED supply chain will result in a US$6.709 billion yearly revenue in the year 2021, 3.43% growth compared with the previous year.

Owing to a quick rise in demand for HCL (human centric lighting), smart lighting, horticultural lighting,etc, major suppliers of LED chips packages, say,Samsung LED, ams/OSRAM, CREE LED, Lumileds, Seoul Semiconductor, MLS, and Lightning Optoelectronic have achieved high revenues since the first quarter of the year 2021, and more niche lightings applications make the market more booming, such as lighting for nuclear power stations, pharmaceutical manufacturing facilities, and metal fabrication plants,etc.

The specific LED packages that see a contuned price hike cover mid- and low-power, indoor lighting LED products with under (not including) 1 watt in power consumption, such as 2835 LED, 3030 LED, and 5630 LED. Meanwhile, a 1.3%-1.8% QoQ increase in prices for the same period can be expected for outdoor, industrial high-power lighting LED products with at least 1 watt in power consumption, such as LED with ceramic substrates and 7070 LED.

Forcasted QoQ increases in LED lights products,2Q21 (Unit:USD/1000 LEDs)
The forcasted price increase range in LED lights for the second quarter in the year 2021

After market survey, we think that this price hike arises from that the fact the market market demand for LED lights has been rebounding since 1Q21 and remaining in an uptrend since 2Q21. Also, the led lights manufacturers ramp up their procurement actitivities this year because of the shortage of LED components in the upstream supply chain, along with the onset of covid-19 pandemic. 
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