What Display Daily Thinks: The recent data from DSCC on rising LCD TV panel prices is good news for the sport market in panel sales, and probably gives manufacturers some financial breathing room in their second quarter P&Ls, but if you look at the general trends, and you factor in the lack of demand drivers, the prices for LCD panels and shipment volumes are not likely to get any upticks in the second half of the year. The greater likelihood is mostly stagnation, and maybe some panic price drops towards the end of the year.
On the bright side, if you are a Chinese manufacturer, this is all good news for you because the market is going to get weeded out over the coming 12 months, even further than it has already been weeded, and you are probably ideally positioned to consolidate your gains from the last 5 years.
LCD TV Panel Pricing in Q2’23
The latest report from DSCC indicates that LCD TV panel prices have continued to rise in the third quarter, despite increased supply and higher utilization by LCD makers. This has resulted in positive margins for many panel makers. The second quarter saw a significant increase in prices, with 65″ panels experiencing the largest price hikes. Corning’s price increase on glass substrates was met with less negative feedback than expected, suggesting success in passing on cost increases to customers. The overall supply chain is deemed healthy, indicating positive industry growth. However, the industry still faces the challenge of excess capacity compared to demand, which could lead to future price drops. The report expects panel supply and demand to balance out in the third quarter, stabilizing prices in the second half of the year.
