Chinese City's LED Phosphor Export Value Plummets in 2016

Phosphor export values of Changshu, a city located in Jiangsu Province in China, reportedly tumbled 55% Year-on-Year in 2016, based on data compiled by local customs agency, reported Chinese-language media China News Service.

LED phosphor powder exported from the area totaled 11.51 metric tonnes (11.508 kilograms) valuing US $2.91 million in 2016, while the total weight shipped experienced an incremental decline of 1.7%, total export values plunged as much as 55%.

Some of the top export destinations of the region’s phosphor powder included U.S., Korea, Taiwan, Japan and Hong Kong, based on statistics compiled by Changsu Entry-Exit Inspection and Quarantine Bureau, which is a branch of China’s custom bureau.

U.S. ranked as the top export market of the region’s export market taking the majority 39.08% share, despite this Changshu phosphor exports to the region declined 24%. Another hard hit market was Hong Kong, where phosphor powder exports nosedived 82.4%.

Phosphor powder exports from Changshu to Asian markets delivered stellar performances, with Korea reporting an increase of 5.9 times and Taiwan 3.1 times, the two markets respectively comprised 19.73% and 19.68% of phosphor powder exports. Exports to Japan also reportedly jumped up by 7.5 times.

The wide discrepancies in export market performances caused volatile pricing situations, where phosphor powder prices either skyrocketed or plunged.

The Chinese city exported low class yellow phosphor powder and high quality green LED phosphor powders throughout 2016. Total amount of phosphor powder shipped climbed up 26% to reach 7,640 kilograms last year, but green phosphor powder shipment from the region dropped 31.5% to 3,868 kilograms. Diverging developments of rising shipment of low entry level yellow phosphor powder, while advanced green phosphor powder declined.

Average sales price (ASP) of Changsu phosphor powder declined steeply in 2016 by 45.8% to US $252.7 per kilogram compared to US $551.5/ kg a year earlier.

The ASP of yellow phosphor powders for LEDs fell 44.1% from US $131.3/ kg a year earlier to US $73.3/ kg in 2016.

ASP of green phosphors also downed 39.5% to US $607/ kg, compared to US $1,002.4/ kg in 2015.

Main causes leading to the diving phosphor prices include plummeting rare earth element prices, and Chinese companies intensified pricing competition as they contest for access to international markets.

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