Sapphire prices continued to fall - MONOCRYSTAL 2016 full year earnings

In the sapphire industry famous Russian companies Monocrystal, recently announced the 2016 full year earnings. In the field of LED and other large areas of sapphire related materials, Monocrystal has a high market share. According to the information, the annual growth rate of the company sapphire shipments reached 2016 18%YoY, sapphire market share in the global LED market reached 33%.

(Photo Credit: Monocrystal)

Monocrystal's revenue in 2016 reached $56 million 800 thousand, compared with 2015, a decrease of less than 18%, mainly due to significant decline in the value of the impact. The company said, LED sapphire wafer (mainly used as sapphire substrate) in 2016 the average market price (ASP) fell by 23%, while the sapphire crystal rod (ingot) prices fell by more than 38%.

Monocrystal pointed out that there are a lot of long-term orders on hand, the supply of three to Asia's first line of sapphire customers, the total amount of orders reached $21 million.

As for solar products, the annual revenue reached $21 million 200 thousand. In terms of shipments, shipments in 2016 amounted to 2105 metric tons, the highest record of the company's solar energy business. Monocrystal also successfully cut into the top three supply chain systems in the top ten solar plants, and continued to ship them.

Monocrystal CEO Oleg Kachalov said that in 2016 the company grew rapidly, while in the company's history, and finally reached more than 3 of the market share of the milestone. Through the company's precision technology, can reduce production costs by more than 20%, allowing the company to take into account the price and high quality output.

LEDinside believes that if there is still room for the decline in the price of sapphire substrate in 2017, the cost of global LED chips have the opportunity to be able to reduce some. (Ivan, LEDinside)

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