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Continental Panel Factory Capacity Increases, There May Be Oversupply In The Panel Market Next Year

Blaze Display Technology Co., Ltd. | Updated: Dec 03, 2018

Beginning in mid-November, panel quotations continued to fall. The industry believes that the long-term quotation rate is likely to fall. In the second half of this year, the capacity of the mainland panel factory will increase. The possibility of oversupply in 2019 will increase. Next year, it is necessary to strictly prevent the supply and demand from reversing the risk.

In the second half of November, the panel price was opened. The decline of the TV panel was expanded to 1 to 6%. The price of the monitor panel fell by 1%. The price of the notebook panel began to decline. The decline was around 1%. The overall price trend remained low-season.

And December is the end of the fourth quarter, the downstream buyer's inventory control is more cautious, the market expects the first quarter of next year will be the most serious quarter of supply and demand imbalance in recent years, the panel price decline in December will slightly expand.

With the launch of the 8.5 and 10th generation lines of BOE in the second half of this year, IHS estimates that the panel supply growth rate will be 6-8% this year, which is equivalent to the area demand growth rate of 6-8%. The panel industry needs to guard against TV panel reversal risks.

Previously, in order to carry out the annual sales sprint in the double 11, the TV brands that have gathered in the Chinese market almost shouted to stimulate sales. Before purchasing a large number of panels for stocking, it was lower than expected market performance, allowing brands to tighten their stocks. Planning, upstream panel companies have a worrying outlook on shipments.

However, the sales situation of the double 11 was not as expected. According to IHS Displaysearch data, the TV panel quotations all fell, with the 32-inch drop being the heaviest, falling by $4, or 8%. The quotation fell below $50 and fell to $48. The average size of other sizes fell by 2-3%, and the IT panel fell by an average of 1%.

Entering the traditional off-season, coupled with increased production capacity, the oversupply of the panel will continue from the fourth quarter of this year to the first quarter of next year, deepening the pressure of falling prices. The Korean panel factory adjusts the production line and drives the IC, COF, polarizing plates and other related components. In the first half of next year, it will affect one of the supply-side variables, and the panel will supply over-supply factors, affecting bargaining and returning to fundamentals.


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