Oversupply of LCD monitor panels in 2020, price trends are likely to follow in 2019
According to the latest survey by TrendForce Optoelectronics Research (WitsView), www.wce.com.tw.under the condition of demand recovery and supply convergence, the price of TV panels below 65 inches (inclusive) may have a slight increase at the end of January. In contrast, due to the increase in shipments of monitor panels by panel makers and the continuous development of new production capacity in China, it is estimated that in 2020 supply will exceed 20% more than demand, and it will be difficult to stop short-term prices. TrendForce pointed out that in 2019, due to the continued production of large-generation lines (10.5 and 8.6 generation lines), the panel ’s serious oversupply caused the price of TV panels to bottom out. There were only US $ 30 left in December, compared with the same period in 2018, a drop of 25%. With more than 80% of TV panel prices lower than the cost of cash, most panel makers are actively responding to production cuts. The fastest and most effective way to solve the problem of oversupply of TV panels is to directly reduce the front glass investment, including short-term reduction of film production, and permanent shutdown of production capacity. In the second half of 2019, Samsung Display (SDC) and LG Display (LGD) took the lead in shutting down production lines; starting in September 2019, Samsung Display, LG Display, and Huaxing Optoelectronics and other panel makers began to reduce production rates to reduce TV panels Prices fell and production cuts continued into the fourth quarter. In terms of the equivalent area of the Gen 8.5 generation line, the output reduction in the third quarter should be reduced by approximately 8% of the total Gen 8.5 production capacity, and expanded to 16% in the fourth quarter. Due to the large reduction in panel production and the sales success of Double Eleven in the fourth quarter and Black Friday in North America, the prices of TV panels below 65 inches were flat or even reversed in November and December 2019. Secondly, when most panel manufacturers plan their shipment targets in 2020, based on profit or de-capacity considerations, TV panels plan to sell more large-sized products and reduce the output of small-sized panels, reducing the overall TV panel sales target in 2020 . LCD monitors with higher profits have become the key sales products of various panel makers. Most panel makers have raised their LCD monitor panel shipment targets in 2020. In addition, HKC has put into the supply ranks, which will lead to LCD in 2020. The supply target of monitor panels is nearly 20% greater than the demand, making LCD monitor panel prices continue to face downward pressure this year, and it is expected that it will be difficult to see a rebound before falling below the cost of cash.