June TV panel prices still fall endlessly, some sizes have fallen below the cost price. According to market research institutions and supply chain information, in order to prevent continuous price decline and expand losses, BOE, TCL Huaxing, Huike, LGD and Innolux panel manufacturers began to reduce production in all lines since June, in an effort to rescue the market, and some production lines have reduced production by more than half.
Market research firm DISCIEN put it that in the week or so since news surfaced in late May that BOE was planning to put its B9 and B19 plants into life in June, China Star Optoelectronics (CSOT) quickly completed the decision from considering the adjustment of the chip in T10, to basically confirming the production reduction but not specifying the details, to controlling the output of all plants. HKC has completed the transformation from temporarily not reducing production to reviewing the whole line of factories to carry out chip downrevision. LGD, Innolux and Sharp SDP have also decided to cut production in June.
In addition, the latest release of Runto Technology research research shows that, combined with the upstream and downstream information of the supply chain, since June, the panel factory has significantly reduced the amount of mother glass, including a reduction of about 25% BOE, 20% CSOT, and 20% HKC. Among them, Suzhou Huaxing G8.5 generation plant (T10) reduced production by 50%.
Fan Boyu, TrendForce's vice president of research, said demand in the TV market is still hampered by headwinds such as inflation, and brand customers remain conservative about panel purchases in order to avoid continued inventory build-up. As supply and demand continue to fall out of balance, TV panel prices will continue to fall in June, with 32-inch and 43-inch panels falling $5 to $6, 55-inch panels falling $7, and 65-inch and 75-inch panels falling between $12 and $14 under pressure from overcapacity, he said.
Prices for 55-inch TV panels averaged $94 in early June, down 3.1% from late May, according to jibang. The average price of a 43-inch tablet was $58, down 4.9%; The average 32-inch tablet was $30, down 9.1%.
For the panel factory have cut production, RUNTO technology (RUNTO) believes that although the world is still facing war, epidemic, inflation and high inventory and many other practical problems, but the large production reduction and the Chinese market 618 promotion has released a strong market need to rebound signal, it is expected that the panel factory quotation in June will stick. From July, panel prices below 55 inches will gradually stabilize, in August to continue to tamp and a small range to rise are possible. More than 65 inches of large size panel trend, still need to observe the digestion progress of the global machine inventory to make a judgment.
Put its life en says that if the panels can continue to put production under control at a consistent pace, the current price decline could be put under control, and that it could enjoy a short-lived rebound in Q3 prices with the advent of the season and racing stock and the company's aggressive pricing strategy after the production cut.
