On July 5th., TrendForce announced that in the LCD panel quotation, some TV panel models began to stop falling, and other size declines are generally convergent, from the previous period of more than 10% to less than 10%. This reflects that the effect of manufacturer production reduction is effective which helps relieve the operating pressure of AU and Innolux.
The average price of a 65-inch TV panel fell $3 from late June, and the 55-inch, 43-inch and 32-inch averages are unchanged from two weeks ago, showing signs of stopping the decline. Compared with the early part of June, the declines were 5.3%, 5.2% and 6.7%, respectively. Overall TV demand is still weak, but almost quotations of all models of the LCD panels have fallen below cash costs. As a result, panel factories began to control production capacity, effectively reduce supply, and promote the price decline began to converge or even stop falling.
The 32-inch TV panel is still partially supported by emerging market demand, whose price is at the bottom, so the decline is not significant. So it has the opportunity to take the lead to stop flat with the 50 inch which is the first break cash cost. While other sizes, such as 43 inches and 55 inches, are expected to drop about $1 to $2. Large size TV panel declines is still obvious since the major brand customers reduce the purchase, resulting in a certain inventory pressure to panel factory. The 65-inch is expected to fall between $5 and $7, and the 75-inch is expected to fall between $10 and $12.
IT monitor panels continue to face weak demand and are expected to fall about $3 to $4 in July. The demand for laptop LCD panel is still at a low point, and the brand’s desire to pull goods is still not strong, but there is some change in the price decline. Now the prices of 11.6-inch HD panels, which initially fell due to weaker demand for Chromebooks, have gradually fallen back to outbreak levels, with a chance to moderate to less than $0.10 in July.
In addition, the 14-inch, 15.6-inch HD TN panel decline are also moderated, which is expected to drop $2.20 to $2.30. While, the 14-inch and 15.6-inch FHD IPS panels, which started falling late, are remained down around $2.90 to $3.
Information electronic LCD panel also continued price pressure. An international brand factory notified the panel factories urgently that LCD monitors, laptop panel demand down by 50% in Q3. The main affected panel factories are BOE, LGD, AUO, Innolux, CSOT, SHARP, wide influence level with wide range of impacts.
In addition, the report of Group Intelligence, a research agency, predicts that 260 million LCD TV panels will be shipped globally in 2022, of which 68 million will be shipped in the first quarter, accounting for 26.5% of the annual shipment scale. For the second to fourth quarters, average shipments are expected to be around 62 million units. In the second half of year, there are still uncertainties in the TV panel end market, the peak season is not prosperous, weak demand. Because of the outbreak of the War between Russia and Ukraine in the second quarter, the demand in the European market stalled and declined, and the purchase volume of brands shrank to a new low in nearly 10 years. The demand for large-size TV panels continued to deteriorate, while the demand for small-size TV panels declined, and the panel shipments in the second quarter decreased rapidly.
In the third quarter, Samsung suspended LCD screens procurement and strictly controlled inventory, affecting the purchasing confidence of other brands. LCD panel shipment in the third quarter may not be prosperous in the busy season. In the fourth quarter, as shipping costs continue to fall, panel prices gradually bottomed out, and brand inventories tend to be healthy, the demand for large-size TV panels is expected to recover growth, but the end consumer market is still not enough to buy, so panel manufacturers shipment strength is difficult to recover strongly.
Anyway, if you need to purchase some LCD modules from 7 inch to 21.5 inch in original factory models, please kindly reach me out at lisa@gd-ytgd.com at any time.
Post time: Jul-09-2022