Q1 Global LCD TV panel shipments will decrease by 3.6%! Short-term price increases expand
Since the beginning of this year, due to the outbreak of the new crown pneumonia epidemic, delays in the resumption of work and poor logistics have caused considerable impact on the panel industry with complex industrial chain links, and the terminal retail market has also been significantly affected. Based on this, Qunzhi Consulting released the latest report pointing out that the epidemic has four major impacts on the TV industry.
Qunzhi Consulting pointed out that upstream materials such as PCB and polarizers are facing tight supply. Materials, labor, and logistics are common problems faced by the entire display industry. For panel manufacturers, the upstream material gaps mainly include PCBs, polarizers, and other related electronic materials and consumables. However, Qunzhi Consulting also predicts that the output of panel makers in March is expected to improve significantly.
At the same time, the back-end production capacity of the panel factory was damaged, and shipments in the first quarter are expected to decrease by 3.6%. According to a survey by Sigmaintell, the front-end Array section of the panel factory has not been affected by the epidemic and has not been significantly reduced, and the utilization rate of each company has been slightly lowered in the first quarter. However, due to delays in resuming work, limited logistics and shortage of raw materials, the back-end production of the panel factory has a greater impact. The global output of LCD TV panels (Open cell) in February is expected to drop by 13.8% from the original plan.
From the perspective of panel factory shipments, due to the more serious loss of panel production capacity in February, it will have a greater impact on panel shipments in the first quarter. With the recovery of work resumption rate and material supply, it is expected that the panel output situation in March will improve significantly. According to data from Sigmaintell, the global LCD TV panel shipment scale in the first quarter of 2020 is expected to decrease by 3.6% from the pre-epidemic forecast.
On the other hand, Qunzhi Consulting also predicts that the shipment scale of the Chinese market in the first quarter of this year will drop by 18% year-on-year, and it is expected to drop by 3.1% or even lower for the whole year. The epidemic is showing a trend of spreading and worsening in the global region, and it is expected to have a greater impact on overseas markets.
As the supply and demand of LCD TV panels tighten in the first quarter, the short-term increase in panel prices will expand. Specifically, in the first quarter of 2020, the supply-demand ratio of the global LCD TV panel market has shrunk to 4.2%, and mainstream sizes such as 32-65 inches are showing tight supply and demand. Driven by the short-term tightening of panel supply and demand, Qunzhi Consulting expects that the price increase of various sizes of panels in February is expected to expand, and the upward trend will continue in March. (Jiwei)
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