Global LCD TV Panel Price Increases

Global LCD TV Panel Price Increases

 Several research institutions recently released a TV panel price vane brief, the global LCD TV panel market supply tension is expected to continue into the second quarter. Supply continued to tighten, pushing the head panel price strategy to radical, LCD TV mainstream size products from February to March prices will maintain a large increase.

Supply and demand-side resonance

 Each organization gives the panel price increase dynamics slightly different. In February, the average price of 32 inches,43 inches,55 inches, and 65 inches rose by $2,$3,$6, and $6, respectively.

 In February-March, the average price of 32 inches rose $3-4 per piece, and the average price of 39.5 inches to 43 inches rose $5 per piece.

Orville predicts, The average price of 32 inches and 39.5 inches rose $4 a slice in February, March up to $4 per tablet, The 43- inch February and March prices rose $6 a slice, The 50- inch February and March prices rose $8 a slice, The average price of 55 inches,65 inches and 75 inches rose $10 a slice in February, March rose $8 per tablet.

 The resonance between supply and demand makes the price rise. Zhang Hong, director of research at Qunzhi Consulting TV, said the dual effects of "home economy" and fiscal stimulus in overseas markets continued, and retail performance in markets such as Europe and the United States continued to be strong. Superposition manufacturer to fill inventory demand, the first half of this year TV the whole machine manufacturer panel preparation intention is strong. At the supply end, the supply gap of upstream materials, especially all kinds of IC, is enlarged step by step, and it is difficult to solve in the short term, and the effective supply of some panel factories is greatly impacted.

At the end of January, Japan's leading glass substrate factory in South Korea exploded. Ji Bang Consulting believes that although the impact of the accident on the overall glass substrate supply is limited, in the case of high panel demand, the small amplitude change at the end of the parts may have a greater impact on the price. Due to capacity scheduling and distribution after furnace damage, the main impact of the supply gap will fall in the second quarter.

Enhanced voice of Chinese manufacturers

 Olivier expects global TV panel shipments to increase slightly by 1% in 2021, slightly higher than previous judgments, mainly from Samsung's delayed withdrawal.

 Samsung said it had planned to shut down its LCD production line by the end of last year, but did not exit on schedule. Perhaps from a combination of considerations within the Samsung group, Mr. Olivier believes that Samsung electronics need Samsung to show that it will continue to supply under tight panel resources to keep its supply chain stable.

Zhang Hong expects the actual supply area of global LCD TV panels to increase by 6% from the same period last year in 2021. A number of factors are taken into accounts, such as the continued release of the Chinese mainland's new line capacity and the impact of capacity climbing progress, and the delay in the withdrawal of Korean factory capacity.

 Avi Ruiwo pointed out that in 2021 Chinese mainland the size of manufacturers will further increase. As a whole, Chinese mainland manufacturers continue to expand their capacity advantage, and it is expected that the proportion of TV panel shipments will increase to 60% in 2021, and continue the pricing power advantage of the main size panel since the second half of 2020.

Long-term buyers of the panel industry told China Securities News," strong demand to support this round of LCD panel prices rose, and the LCD industry will basically not expand production ." Fangzheng Securities Electronics Industry analyst Tao Yinzhi believes that as the competition pattern improves, TV panel prices are less likely to adjust significantly.