LCD TV panel prices in the first quarter to stop falling market expectations. Market research institutions recently released LCD TV panel price vane report shows that in March, in addition to the 32-inch panel stopped falling for two consecutive months, other size panel prices fell more than. More ominously, the agency expects 32-inch panel prices to fall in April, while large-size panel prices are still falling.
The first quarter to stop falling expectations
LCD TV panel prices of different sizes. On the smaller side, Overevo said prices for 32-inch panels were flat month-on-month in March, but are expected to fall 1 per unit in April due to overall panel cuts.
On the mid-size side, Overevo expects 43-inch panels to remain down 1 in April and 50-inch panels to fall 2 in April, but thinks 50-inch panels are close to vendors' cash costs.
In terms of large size, Overiwo believes that the price of 65-inch and 75-inch panels is expected to fall by 5 per piece in April due to the increase in inventory pressure of the head brand and panel factory. Group Intelligence believes that due to weak purchasing demand from international brands and loose supply, the price of the aforementioned two size panels maintained a decline of nearly 10 / piece in March, and is expected to converge to 6 / piece in April.
Panel is a typical cyclical industry. After about three years of supply-demand adjustment and epidemic factors, LCD TV panel ushered in the longest round of "price surge" in history from the second quarter of 2020. However, from August 2021, terminal demand reached saturation, and the panel industry economy turned downward and has continued to this day. The first quarter of this year was widely expected to end the decline, but ultimately failed to do so.
"The price of LCD TV panels has not fallen below the cash cost, but is above the cash cost," said Lee Yaqin, president of Group Intelligence. LCD TV panel is expected to be a decline in the second quarter. Prices of all sizes of TV and notebook panels are falling, which means that the global LCD panel market is in a downward trend."
Korean factory or restart production plans
Prices for some LCD TV panels have halved from their highs last year and some product lines are losing money. The personage inside course of study thinks, under heavy pressure, South Korea two big panel factory or stop production plan to put on the agenda again.
With the strong rise of domestic panel manufacturers such as BOE and TCL Huaxing, competition in the LCD industry is fierce. Samsung Display has been shutting down LCD production lines in recent years to focus on OLED, QLED and other display technologies. Samsung Display had planned to shut down all LCD production lines by the end of 2020, but delayed the plan to ensure adequate supply of panels amid the pandemic and soaring panel prices.
The same is true of Lg Display, a south Korean panel giant. The company had planned to stop making LCD TV panels in South Korea by the end of 2020, but it is still operating.
A buyer who follows panels for a long time said, "Although Samsung Display's decision to shut down all LCD production lines will have little impact on the supply side of the industry, it means Korean companies are losing money again and prices are falling, so it is only a matter of time before Lg Display shuts down its local LCD production lines."
We will respond to the pressure of destocking
Over the past year, domestic LCD panel makers have made a lot of money, and now the pressure is mounting.
Li yaqin said the pressure on panel factories has shifted from a lack of supply of raw materials such as chips to the demand side. As the global epidemic eased, demand fell back and supply chain risks were gradually removed, leading brands to start destocking. And this round of destocking is comprehensive, involving TVS, monitors, laptops, mobile phones and other consumer electronic products. In addition, in this process, the Conflict between Russia and Ukraine and the aggravation of global inflation, the brand entered the accelerated destocking stage.
Li yaqin said panel manufacturers had to make some substantive adjustments to cope with the risk of demand contraction caused by destocking, such as reducing the production line running rate. But brand destocking won't hinder the pace of product upgrades, which are expected to pick up this year.
Li Yaqin judge, "this year panel manufacturers' profits will be differentiated, a part of the panel factory will face losses. The current situation is a test of the panel factory's ability to resist risk and demand contraction, product depth, market strategy, product line adjustment speed and other factors will affect profitability."
It is worth noting that TCL technology (000100) recently told investors about whether the industry adjust rate of grain or dynamic respond to demand fluctuations of questions, "over the past few years is the key stage of country transfer capacity, industry structure changes, the enterprise market position fast shuffle, panel companies in order to ensure the scale advantages and market position without reducing the rate of grain or move. After the country transfer comes to an end and the industry competition pattern is reshaped, the healthy and stable development of the industry is in line with the interests of all enterprises. In the face of fluctuating demand, companies will seek a balance between scale and efficiency.
