Large-size panel prices fall
According to the data from the State Optronics Research Center, global TV panel prices have entered the price inflection point since the second half of 2017 and fell for nine consecutive months. The demand has not recovered yet. The price decline has not stopped and will continue to squeeze panel makers' profits. Inch-65-inch TV panel prices maintained a range of 3-10 US dollars decline, especially the 65-inch large-size panel prices fell significantly from the third quarter of 2017, the average price of 65 inches in March 2018 panel dropped to 300-290 US dollars In April, it is expected to drop to 280 US dollars, which is already quite close to the cost.
On the demand side, Qunzhi Consulting believes that the continuous political and economic turmoil in the world and other factors have become one of the biggest uncertainties affecting future TV market fluctuations. Under the downward trend of panel prices, TV manufacturers expect some panel prices to touch in the second quarter. At the end, we are cautious about stocking. Panel maker stocks are accumulating.
On the supply side, HIS Markit pointed out that although panel prices have been declining since the second half of 2017, some panel makers have not reduced their production capacity in order to maintain their economies of scale. In addition, panel makers’ investment enthusiasm for high-generation production lines is still rising. The consultation expects that the production area of global LCD TV panels will increase by a significant 10.5% in 2018. The growth of production capacity will mainly come from the line of G8.6 and G10.5, which will increase the supply capacity of large-size panels such as 50-inch, 65-inch and 75-inch panels.
Cinda Securities Research reported that in 2017, the global TV panel shipments totaled 264 million, up 1.3% year-on-year. With only a slight increase in global panel shipments, China’s panel supply continued to grow substantially. Panel supply will be surplus in a long period of time in the future, and related companies should be careful.
High-generation line will increase production capacity in China
Large-size, ultra-high definition has become an important trend in the display field. Dong Min, vice president of Aowei Cloud Network, said that 75.9% of global TV panel shipments in 2017 were 1.567 million, accounting for 0.6% of the total market. It is expected that 75-inch global in 2018. Panel shipments will reach 2.6 million, an increase of more than 50% year-on-year.
In the future, new production capacity for G+ generation lines will be mainly concentrated in mainland China. Liao Bingjie, vice president of China Star Optoelectronics, has stated that by 2021, there will be 30 production lines above G8.5 generation worldwide, among which, G10.5 generation Line 8; There will be 15 G8.5 production lines in mainland China, of which 4 will be G10.5 lines.
Specifically, the BOE Hefei G10.5 generation line was put into production in December 2017 and will be mass-produced in mid-year. On April 9, the BOE Wuhan G10.5 generation line also broke ground. In addition, including China Star Optoelectronics, China Electronics, etc. Manufacturers are also actively constructing or planning for the G10.5 generation line. It is reported that the G10.5 generation line can achieve economical cutting of 65-inch or 75-inch panels.
The industry believes that the lack of ultra high-definition content is still a big constraint for large-size displays. In response, relevant persons from the Ministry of Industry and Information Technology recently stated that the Ministry of Industry and Information Technology is stepping up its efforts to formulate the “Ultra HD Video Industry Development Action Plan (2018-2022)”. The first draft has been published. After the review, it will be released as soon as possible. Next, we must further improve the relevant policies and standards, further strengthen the content construction, and constantly improve the industry support.