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2017 LED phosphor prices tend to be stable
2016 is the most dramatic year for the LED industry. In the face of low-cost competition in the mainland market, international giants such as Philips and Osram have been losing their arms, and GE has suddenly withdrawn from the Asian and Latin American lighting market. Taiwanese companies have reduced their LED production to four. The domestic LED market is not flat. The rising prices of raw materials, the collapse of logistics have caused a panic in the capital chain, the devaluation of the renminbi, and the environmental storm have swept the small and medium-sized enterprises. The reshuffle continues. The price of LEDs has been raised, and the phosphors have still fallen sharply. The price hikes in turn are important keywords in 2016. In the case of falling prices over the years, the overall loss of the industry continued, the price bottomed out and returned to reasonable profit margins. The price increase of the chip spread to the lamp beads, and further spread to the downstream application side, covering almost every end of the industry chain. However, the price of phosphors is the opposite, and prices are still showing a sharp decline. According to the data, in 2016, the price of LED phosphors exported from Changshu, Jiangsu Province fell sharply. The average unit price dropped from 551.5 US dollars/kg last year to 252.7 US dollars/kg this year, a drop of 45.8% year-on-year. In this regard, Feng Rongbiao, technical director of the LED business unit of Jiangmen Keheng Industrial Co., Ltd., analyzed that some phosphor manufacturers lacked the continuous production capacity of continuous research and development last year, and it is difficult to keep up with the pace of improving product quality and cost. Products that meet market needs. This ultimately led to the risk of bankruptcy, and even some small factories in the event of a clear inventory, the loss of sales, seriously disrupted the market. Although the price of LED phosphors dropped sharply last year, the total sales of LED phosphors continued to grow rapidly, and the development of the entire LED phosphor industry remained optimistic. However, some LED phosphor companies have low comprehensive competitiveness and cannot stand firm in the big waves, and have gradually been eliminated or integrated by mergers and acquisitions. At the end of 2016, there were only 5 or 6 LED phosphor manufacturers still in large-scale production. Feng Rongbiao said frankly. Combining the advantages to achieve the doubling of production in 2016, the market competition will be renewed, and the leading domestic phosphor brand enterprise Keheng Industry is still strong. In 2016, its output value in the LED business reached more than 30 million. Up to 30 tons. Kehengeng has always been at the forefront of the industry, which is closely related to the company's own strategic layout. Feng Rongbiao said that Keheng always adheres to the chairman of the company, Mr. Wan Guojiang, the quality first, the customer-oriented company purpose, invests a lot of manpower and material resources in product research and development, and cooperates with famous domestic universities such as Fudan University and Sun Yat-sen University. Joint research and development to improve product quality. This has enabled Keheng LED phosphor products to maintain a leading edge in quality. At the same time, it combines the scale advantages of Keheng three-primary phosphors to reduce costs, maintain price advantage on the basis of quality, and achieve true cost performance. In addition, in April 2016, Keheng and Hangzhou Fire Crane Optoelectronic Materials Co., Ltd. carried out resource integration and jointly established Hangzhou Hengke New Material Co., Ltd., a subsidiary of Keheng Holdings, which made Keheng's LED phosphor products share in East China. More than 50%. In summary, under the combined effect of quality, cost and capital operation advantages, Keheng achieved an increase of 60% in output value in 2016 and doubled its output. Four major directions to launch full deployment in 2017 Looking forward to 2017, the LED industry has gradually returned to rational development, as the development of the upstream phosphor industry is worth looking forward to. At present, the average price of LED phosphor products is close to the cost line. Due to factors such as product R&D investment and raw materials, it is estimated that the price of LED phosphors will stabilize in 2017. Feng Rongbiao said that Keheng's goal in the LED business in 2017 is to double the output value. In order to achieve this goal, Keheng has formulated a specific strategic direction: 1. In terms of products, Keheng will continue to increase investment in product research and development, and maintain cooperation with well-known domestic universities to maintain product quality. Leading edge, while increasing the research and development of backlight products, grab the big cake in the backlight field. 2. In terms of technology, Keheng will continue to play its advantage in application design matching in 2017 based on the self-developed LED full spectrum application technology, matching the market application requirements, in order to achieve in the aspects of super high index and super high brightness. Apply innovation to provide customers with better solutions and products. 3. In the market, we will continue to maintain exchanges and interactions with customers, actively maintain large customer relationships, and jointly develop products for joint development, increasing customer share and market share. 4. In terms of capital and cooperation, Keheng has already participated in two downstream application companies, Shenzhen Lian Teng and Shenzhen Huaxia Guangcai. At the same time, it also integrated the resources of Hangzhou Yinghe Optoelectronics Co., Ltd., and jointly established Hangzhou Hengfeng, a subsidiary of Keheng Holdings. Section, through the joint horizontal and vertical manufacturers, to provide more value-added services to package customers, thereby enhancing Keheng's competitiveness. In 2017, Keheng will continue to leverage the capital advantages of listed companies and continue to cooperate with large manufacturers such as chips, packaging glues and brackets in the horizontal direction, and strategically cooperate with downstream application manufacturers to form a comprehensive Keheng ecological circle and realize LED. The joint development of the industry has achieved mutual benefit.
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