Qunzhi Consulting: The supply and demand environment tends to be relaxed, and panel prices are expected to be adjusted moderately in July

The Zhitong Finance App learned that Qunzhi Consulting published an article stating that in July, the increase in supply was stronger than the recovery in demand, affecting the easing of the supply and demand environment in the TV panel market. On the demand side, demand in the Chinese market is weak, and there is some support for overseas year-end and peak season sales. In July, the overall demand for panel stocking was stable, the area recovered moderately, and manufacturers were significantly divided. First, demand for panels from Korean brands increased sequentially in the third quarter; second, procurement demand from Chinese brands remained relatively stable in the third quarter; third, storage costs significantly cooled down the OEM market and demand for small-sized panels. Combining the above factors, panel stocking demand is expected to recover weakly month-on-month but decline year-on-year. On the supply side, starting in July, the operating rate of panel manufacturers increased month-on-month. This is particularly reflected in the obvious recovery in July after production control in the second quarter of G10.5, which helped the TV panel supply level to recover markedly. Qunzhi Consulting believes that short-term supply recovery is stronger, the supply and demand environment tends to be relaxed, and LCD TV panel prices were moderately adjusted downward in July.

The price performance of panels of each size is as follows:

32”. Demand in the second-tier market has declined significantly. The average panel price is expected to drop by 1 US dollar in July.

50". Although there is some support for 50FHD demand, it is difficult to reverse the weakening of overall demand. The average panel price is expected to drop by 2 US dollars in July.

55". Demand is relatively stable, and supply is gradually increasing. The average panel price is expected to drop by 2 US dollars in July.

In terms of large sizes, brand demand is resilient, but G10.5 production capacity has clearly recovered, and the average panel price is expected to drop by 3 US dollars in July.