According to industry data, since the second quarter, large-size panel prices have fallen. In May, part of TV panels have reached cash costs, and panel makers are at risk of losses. However, prices will have a chance to recover in the third quarter.
The data shows that in the second half of May, the TV panel quoted price still showed a significant decline. The 55. 4K, 43.FHD, and 32.HD Open-cell prices fell by 4 US dollars, 3 US dollars, and 3 US dollars, respectively, a decrease of 2.4%, 3. 3%, 5.9%; 55吋, 43吋, 32吋 TV panel quotes expanded to 4.7%, 6.5%, 17.2%, especially 32吋, with monthly declines over 2017 3 quarters to the first quarter of 2018, three quarters of decline.
In the second quarter, TV panels still faced pressure from inventory adjustment, and the demand side was weak. Mainland China's 10.5-generation and 8.6-generation line of large-size panel new production capacity gradually opened up, the supply surface increased, the supply and demand environment deteriorated, and panel prices fell. The situation is intensifying, and at the same time, part of the quotations are close to the panel cash cost, and then the decline in the quotations will be expected to slow down.
WitsView pointed out that the largest drop in panel price in the second quarter of 2018 was 32-inch panel, and the price in May dropped to 46-50 US dollars, which is close to the panel's manufacturing cost; currently the major supplier of 32-inch panels in mainland China panel makers includes BOE. In May, China Star Optoelectronics and Weike reduced the output of 32-inch panels by 10% to 15%, and switched to production of larger panels such as 49-inch and 55-inch.
Another heavy-hit area is the 65-inch panel, which has experienced a significant decline under the anticipated production volume of BOE 10.5. The May offer has dropped to 252-255 US dollars, which is quite close to the cash cost of 230-250 US dollars.
According to the industry, the current quotation has reached the cost of cash, the decline will slow down, and the quotation will be accelerated in the second quarter, which will help to stop the quotation during the peak demand in the third quarter.
