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The Price Of Small And Medium-sized Panels Has Risen Slightly, And There Is No Guarantee That It Will Continue To Pick Up

Blaze Display Technology Co., Ltd. | Updated: Aug 06, 2018

Recently, data from several market analysis organizations showed that the price of small and medium-sized TV LCD panels began to pick up, especially 32 inches. The price rebound in July was more obvious. TCL Group said on the interactive platform of investor relations that the TV LCD panel industry is expected to continue to recover based on the arrival of the terminal product shipment season and the continuous improvement of supply and demand.

However, the price of large-size TV LCD panels has been in place, and data shows that the price of 55-inch and 65-inch is still slightly down. Can the TV LCD panel market continue to pick up in the second half of 2018?

In the peak season, the price of small and medium-sized panels rose slightly.

After the continuous downturn in the first half of the year, the TV LCD panel has been dry for a long time, and the price has finally begun to rise. The price of 32-inch, 39-inch and 42-inch has risen slightly, and the 32-inch price rebound is more obvious. Qunzhi Consulting and Ovi Cloud reported that the price of 32-inch rose by $3 in early July. Currently, the 32-inch price continues to rise.

Ovi Cloud analysts said that the third quarter is the peak season for the whole machine manufacturers to stock up, driving demand for TV LCD panels to increase, prices began to rise. TV panel prices will continue to pick up in the third quarter.

The driving force behind the TV LCD panel industry's recovery is not the domestic market, but the overseas market. After the domestic market has passed 6.18, July to August is the off-season of the market, and the inventory is high, the demand for TV LCD panels is not high. However, the overseas market is in the peak season for stocking, and the demand for LCD panels is more urgent. Li Yaqin, deputy general manager of Qunzhi Consulting, revealed that at the end of the second quarter, the color TV inventory in the North American market was relatively small. Samsung, LG and TCL were all stocking for the fourth quarter, which drove the price of LCD panels to rebound.

This round of increase is mainly concentrated in small and medium-sized TV LCD panels, which has little effect on large size.

WitsView report pointed out that due to the sharp impact of TV panel prices, Innolux, AUO and LGD in the first quarter of the 6th generation line product mix adjustment, reduce the glass investment of 65-inch TV panel, increase the investment of small-size TV panels or monitor panels . BOE and Huaxing Optoelectronics reduced their 32-inch panel investment and switched to larger-size TV products. In addition, Huaxing Optoelectronics and Samsung Display will be repaired in March and April respectively.

Li Yaqin pointed out that the growth of the TV market in the first half of the year was mainly concentrated on large size, and LCD panel manufacturers turned more capacity to large-size panels in order to make profits. For example, Innolux switched to 65 inches and BOE switched to 55 inches. The panel manufacturer's capacity structure is biased towards large-size panels, resulting in a sharp drop in the supply of small and medium-sized panels such as 32-inch, 39-inch, and 43-inch. However, the demand for small and medium-sized products in the overseas market has not decreased, which has led to an increase in the price of small and medium-sized products.

The year-on-year growth is not obvious, and there is no guarantee that it will continue to pick up.

Can the TV LCD panel industry continue to pick up in the second half of 2018?

In general, the price trend of TV LCD panels is closely related to the demand of the downstream machine market. However, the color TV market in the domestic market in the first half of this year was not booming. "China's color TV consumption and market trends forecast report for the second half of the year from January to June 2018" pointed out that domestic color TV sales from January to June were about 23 million units, down 4.2% year-on-year.

In the first half of the year, domestic manufacturers' price wars and World Cup marketing failed to drive sales growth, and the domestic TV market was not optimistic in the second half of the year. The relevant person in charge of Hisense predicts that the domestic color TV market will decline by 2% in 2018. The relevant person in charge of Sony pointed out that the situation of China's color TV market in the second half of 2018 is equivalent to that of the first half of the year.

Unlike the domestic market, the overseas market continued to grow in the first half of the year. "China's color TV consumption and market trends forecast for the second half of the year from January to June 2018" pointed out that from January to May, the output of color TVs was 33.68 million units, a year-on-year increase of 26.6%. Wu Rongbing, senior analyst of IHS Markit, believes that the price recovery of TV LCD panels is a good start. If the growth of overseas markets can be stimulated by low-priced products in the second half of the year, it is likely to drive the price of LCD panels to continue to grow. Will continue to pick up.

At present, the regional market has driven the rebound in the price of small and medium-sized panels. This rebound is more obvious than the sluggish second quarter, but there is no significant growth compared to the third quarter of last year. Overall, there is no change in the overall market structure.

And from the perspective of the global market, the situation of oversupply is still growing. It is understood that the first phase of the Rainbow Xianyang 8.6-generation line project will undergo a half-year mass production climb, and the monthly production capacity will reach 60,000 pieces. The capacity of BOE Hefei 10.5 generation line and CLP Chengdu 8.6 generation line is also increasing. With the continuous release of these new production lines and the production capacity of the original production line, the risk of overcapacity of TV LCD panels will further increase.

Therefore, the recovery of this small and medium-sized price is mainly the result of seasonal demand growth, which cannot determine the overall panel price trend. Next, overcapacity is the norm in the TV LCD panel industry. How to not fall into low-price competition and ensure profit is a difficult problem for major panel manufacturers.


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