Qunzhi Consulting: Prices of mainstream display panels are expected to remain flat month-on-month in August

The Zhitong Finance App learned that based on supply and demand and cost factors, Sigmaintell (Sigmaintell) predicts that mainstream display panel prices will remain flat month-on-month in August: 21.5" FHD, August Open Cell & LCM mainstream panel prices will remain flat month-on-month; 23.8" FHD, August Open Cell & LCM mainstream panel prices will remain flat month-on-month; 27"FHD, August Open Cell & LCM mainstream panel prices will remain flat month-on-month.

Qunzhi Consulting published an article stating that in August, global display panel prices remained flat month-on-month. Under the joint support of limited demand recovery, stable supply pace, and rising material costs, supply and demand reached a consensus on price stability. On the demand side, overall terminal demand weakened in the third quarter. The brand's current procurement strategy is still mainly based on inventory removal, generally adopting a conservative stocking model, and demand recovery in August was relatively limited. Against the backdrop of overall weakening demand, panel manufacturers prefer dynamic allocation and rational production control. The overall supply of display panels is relatively stable, and market supply and demand maintain a weak balance pattern.

At the cost level, the price of upstream materials continues to rise, causing brands and panel manufacturers to face greater cost pressure; although brand manufacturers have cost control requirements, panel manufacturers have no room for more price reduction based on the low profit situation of display panels. Supply and demand have reached a consensus on price stability, and mainstream prices are expected to continue to stabilize in the short term.

Notebook panel

In August, global laptop mainstream panel prices remained flat month-on-month, and high-end prices continued to diverge. On the demand side, due to the concentrated release of brand pre-stocking demand in the first half of the year, brand inventory has rebounded above a healthy level. Although there was a “back to school season” and overseas stocking demand in August, the brand procurement strategy was still mainly based on inventory removal, and the momentum for pulling goods remained low.

On the supply side, panel manufacturers continue the “on-demand production” strategy to match the pace of demand. Overall supply remains steady, and market supply and demand maintain a reasonable level. At the cost level, the continued rise in upstream materials puts pressure on both supply and demand: BOM cost control pressure for brand machines is increasing, and panel makers' profit margins continue to shrink. Taken together, the brand reached a phased agreement on the demand of “removing inventory and controlling costs” and panel manufacturers to “guarantee prices and stabilize profits”, and notebook panel prices continued to stabilize.

Sigmaintell (Sigmaintell) predicts that the overall laptop panel market price was stable in August, and the performance of various specifications was divided: the prices of low-end and mainstream specifications remained flat month-on-month, and the middle and high-end specifications were under slight pressure.

The panel price performance is as follows:

Low-end HD TN: Prices remained flat month-on-month in August;

IPS FHD&FHD+ products: Prices for mainstream specifications and 16:10 entry-level specifications remained flat month-on-month on August; mid-range and high-end panel prices continued to diverge.