IT LCD panel price trend

Data show that in October 2010, the price of large LCD panels continued to decline compared with the previous month, but especially the IT panel's price drop was minimal (Figure 1). Compared with the previous month, the panel for notebook PCs only changed from a stable (same price) to a 1% decline, and the monitor panel also experienced a 2 to 3% decline. In addition, for panels for televisions, panels with CCFL (cold cathode tube) backlights below 37 inches have fallen by 2 to 5%, while panels with CCFL backlights above 40 inches have dropped by about 4%, with LEDs. The panel of the backlight fell by 7 to 10% (Figure 2). On the one hand, the IT class panel has stabilized and stabilized. On the other hand, with the panel equipped with LED backlights as the center, the decline in TV panel prices is still strong.

The surplus of panel inventory in the supply chain, especially through TV sales in China’s National Day business warfare, has sharply reduced its sales, and the locality is currently tending to ease. However, especially in North America's personal consumer market, so far still poor sales, the entire machine manufacturers have excess inventory. Although we are currently hoping to expand sales during the year-end business battle, due to the weak market demand and the reduction of inventory by the entire TV set, the seriousness of the revenue has not changed.

In the price negotiations in early November, panel makers have determined that the current panel inventory has become reasonable and create tension through the supply tightening brought about by the operating rate adjustment. Therefore, some IT panels appear to have started to increase. Quotes. Especially in the case of sales prices that have fallen below the cost of capital (= part cost + direct cost + manufacturing-related labor and indirect expenses) for notebook computer panels and panels for displays under 20 inches, prices have risen (to at least more than capital The level of cost) has become increasingly strong.

At present, Taiwan's panel makers are trying to break this situation by adjusting the operating rate of the production line. However, since debt repayment has not yet been completed, it is necessary to maintain a certain degree of operating rate. Therefore, it is very difficult to operate. Given this situation, some Korean panel makers are still strategically maintaining a higher operating rate. At the same time, these companies will make full use of the production line that has already paid off debt to continue to supply cheap panels, and strive to ensure market share during the period of strong demand in 2011.

In terms of machine manufacturers, in the current situation that panel prices have stabilized and the panel stocks are falling back to a reasonable level, it is said that some manufacturers have begun to increase purchase panels in order to maintain a reasonable inventory. However, given the fact that actual demand is still low (because the supply of panels will peak after November, the demand for panels will decline due to seasonal changes), it is hard to imagine that the holding of stocks will become a direct detonation of demand. Agent and led to a full recovery of panel prices.

The overall trend of prices in November will not change much from the forecast in October. In other words, in the IT panel that has reached a price level close to the cost of capital and the inventory of the entire machine manufacturer has also reached a reasonable level, due to the supply tension caused by the adjustment of the operating rate, the prices of some panels may increase. Accepted by the market. However, under the background that the demand for the whole machine is still weak, the demand for the panel is not very strong, and the price change may be extremely gentle until the entire first quarter of 2011. In terms of TV panels, the inventory level of the entire machine manufacturer is still quite high, and it is expected that there will be room for price reduction. In particular, focusing on panels equipped with LED backlights, prices are likely to continue to decline toward the level of capital costs. In any case, the full price increase is expected to wait until after the second quarter.