Jimmy Industrial

LED challenged by the high price of rare-earth

2012-08-02

LED challenged by the high price of rare-earth

At present, the price of rare-earth is tending to be stable but in high position. The enterprises have to take measures to make sure their strength of competition in the future.

Many suppliers will be challenged by the high price of rare-earth such as LED lighting supplier, electrical vehicle ,wind motor magnetic supplier,car battery and catalytic exhaust grasification suppliers.

For many enterprises, the rapid rising of  rare-earth price has threatened the profit and existence of the enterprises.Even though in 2001, the price has been fallback.Due to the tight supply, especially the heavy rare earth. The enterprises have to take measures to make sure the strength of competition in the future.

 Many enterprises are taking a series of measures to cope with high price. Over 90% of enterprises under interview manages to secure their supply chain or make new protocol with suppliers or looking for new suppliers.84% under interview are trying to reduce the amount of rare-earth or use other material or promote the efficiency of  rare-earth. Over half of enterprises under interview will transfer the increased cost to their clients.

More and more enterprises are looking for other strategy for example to cooperate with others.some enterprises are considering to transfer the production base to China. Because China as the country of origin of rare-earth and the price will be comparatively low.

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