Industry News

First positive growth in a single month, H1 lighting industry export in 2020

Published by admin October 12,2021

In June 2020, the export volume of China's lighting industry was usd 4.578 billion, with a year-on-year growth of 12.95% and the first monthly positive growth in the whole year.
Among them, LED lighting products exports reached us $3.85 billion, up 14.44% year on year, the second consecutive month of growth since last month.
In the traditional lighting products, thermal radiation light sources and fluorescent lamps have seen a considerable increase, while LED light sources and lamps, which account for a significant proportion, have seen a larger increase, thus driving the overall export growth.

By month, the export situation was basically stable before the outbreak arrived in January.
February was the most severe period of the epidemic in China. Production and supply chain suffered from great resistance, especially when orders were placed but deliveries were difficult.
In March, after the epidemic situation stabilized in China, enterprises resumed their work and production, leading to an improvement in the situation.
Production and supply chain further recovered in April and May, and the previous backlog of orders into the execution release period, so the decline further narrowed;
Overall growth was positive in June.
In general, supply-side recovery in a relatively centralized organization is better than demand-side recovery based on decentralized decisions.

The same is true on a quarterly basis. In the first quarter, the supply side problems caused by the domestic epidemic were very prominent, while in the second quarter, the overall performance basically returned to the level of a normal year.
Starting from the third quarter, relevant export enterprises need to face up to a series of demand-side difficulties caused by the incessant overseas epidemic.

In the first half of 2020, China's total exports of lighting industry were 19.404 billion US dollars, down 8.92% year on year and 5.12 percentage points less than the drop in January-May.
Among them, the cumulative export of LED lighting products was US $12.988 billion, down 7.87% year on year and 5.49 percentage points less than that in The first five months.

According to data from the General Administration of Customs, China's exports of goods in June reached 1.51 trillion yuan, up 4.3 percent year on year, registering positive growth for three consecutive months.
In DOLLAR terms, it was $213.6bn, up 0.5 per cent year on year.
In the first half of the year, China's exports of goods totaled 7.71 trillion yuan, down 3.0% year-on-year.
In dollar terms, it was $1,098.7bn, down 6.2 per cent from a year earlier.
In June, the exports of mechanical and electrical products, where lighting products are located, reached 124.1 billion US dollars, up 1.6 percent year-on-year.
Exports in the first half of the year totaled 643.3 billion US dollars, down 5.74% from the same period last year, accounting for 58.6% of the total.

The main reasons why the overall export situation is better than expected:

First, the expansion of the export of materials related to epidemic prevention, epidemic prevention and household consumption, as the supporting items, significantly boosted the overall export, which to a certain extent offset the decline in the export of mechanical and electrical products and labor-intensive products.
As far as the export of lighting industry is concerned, scientific research and medical lamps, ultraviolet lamps and other anti-epidemic and anti-epidemic products have indeed bucked the trend during the global epidemic.

In the first half of this year, the cumulative export volume reached us $103 million, surging 158% year on year. But even so, since most of these products are non-general lighting products and are used in relatively limited occasions, they still account for only a small proportion of the total export volume of the whole industry (US $19.404 billion), and thus have little effect on the overall export of the lighting industry.

Second, the negative pull of export drag items such as mechanical and electrical products and other processing and manufacturing industries is lower than expected.
Due to the fact that some related enterprises are still implementing the foreign trade orders piled up by the previous epidemic, the export orders contracted by the impact of the international epidemic are still not fully reflected in the current export data.

In conclusion, although already achieved effectively curb domestic outbreak, to return to work and production is also the world's leading, and in the general lighting export enterprises under the challenge of the endeavor, the industry exports in dawn, but it is still not optimistic to celebrate, because of the outbreak lagging effect of foreign trade, as overseas outbreak continues to spread, complicated and changeable international situation and set the restraint of trade, overseas market demand side pressure will be more reflected in the third quarter and even the entire second half.
(Source: Wen Qidong, China Lighting Electrical Appliances Association)