Trade Resources Industry Views Output Value in The LED Upstream Ingot Segment Is Expected to Reach US$324 Million in 2015

Output Value in The LED Upstream Ingot Segment Is Expected to Reach US$324 Million in 2015

Output value in the LED upstream ingot segment is expected to reach US$324 million in 2015, according to market research institute Displaybank.

The downstream segments of the LED supply chain have been in oversupply, causing market imbalance. This also caused prices of upstream LED components such as ingots and substrates to fall significantly and inventory levels to rise rapidly.

In 2010, the LED industry was growing rapidly, resulting in a shortage of ingots and substrates and a surge in prices. However, as the LED market began to face falling demand in 2011, prices of upstream materials began to drop severely.

In 2013, as downstream customers are optimistic about growth in the LED backlighting and lighting markets, sapphire substrate makers noted that order visibility has been clear.

Currently, prices of 2-inch sapphire ingots in China reportedly have been rising since April from US$2.80-2.90/mm to US$3.10-3.20/mm, according to market observers.

Industry sources noted that prices of upstream materials are relatively slow at reflecting market demand. However, ingot capacity continues to fall, providing more room for firms to negotiate prices, added industry sources.

Source: http://www.digitimes.com/news/a20130507PD207.html
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LED Upstream Ingot Output Value May Reach US$324 Million in 2015, Says Displaybank
Topics: Lighting