Global large-size LCD panel prices continued to decline in September

It is understood, large size LCD panel prices in August for the "decline" situation, the notebook computer panel prices fell by about 6%, display panel prices fell less than 10% (Figure 1). TV panel, 37 inches below the size of the chain fell by about 5%. 40 inches or more in size, CCFL back light panel chain fell by 2 ~ 3%, led back light panel chain fell by 1 ~ 5%, following the July decline has continued to show a larger change (Figure 2).

2010 from the second quarter prices began to decline, the overall price of TV panel prices fell by 7 to 10%, IT (notebook computers and monitors) with a panel price decline of more than 15%. Therefore, after the July price slump, panel manufacturers have to adjust the panel to start operating rate to reduce supply, the formation of a relatively tight supply situation, thus inhibiting the price decline. On the supply capacity, in August the operating rate of less than 80% of the panel manufacturers mainly in Taiwan manufacturers as the center, in addition to some of the manufacturers are also limited downtime production line.

One reason for this price decline is that they have a whole brand of Korean panel manufacturers to actively maintain the high rate of work, launched a cheap offensive to accelerate the decline in prices. However, this did not evoke the current needs of the panel, but not only inhibit the expansion of the production capacity of the panel, after entering in September also led to the introduction of the policy to reduce the operating rate of manufacturers.

According to the usual practice, it is oriented to (mainly in North America and other regions of the new semester at the end of the war and demand) demand period, and in 2010 the panel needs not only unpopular situation, but continued to decline in prices. The biggest reason is based on the premise of the economic recovery of the whole machine manufacturers to develop a strong supply plan deviated from reality. At present, the panel manufacturers and machine manufacturers - distributors of the whole supply chain has the problem of excess inventory, so machine manufacturers and vendors will cut the panel and overall inventory level on a priority. Therefore, the end of the overall demand, did not bring new demand for the panel. Because the whole industry inventory levels to reach the appropriate extent also need to spend a few weeks, and in October is a panel of peak demand, demand is after the recession, so the estimation of the final panel at the end of the year will not occur until the panel demand unpopular situation.

As for the actual needs of the key machine, the current pace of economic recovery is still relatively slow, so it is still not a full recovery of the situation. Large machine manufacturers launched for panel manufacturers to provide in order to stimulate market development fund (MDF:Market DevELopment Fund) measures to adjust the machine price, wake up, but for now is still very limited.

The current price fluctuations, in our blueprint for the forecast, is moving down the fastest rate of the model. Part of the IT panel prices have fallen to near the level of cash costs.

As for the future price forecasting, if the excess inventory level and the panel to be adjusted, for the 2011 new panel inventory increased and by the end of 2009 as showing a clear trend, the price rise time to estimate the panel is expected to come early. Period is expected from January 2011 to February.