Industry trend & Price trend
IT panel industry is expected to see a peak season in the second half of the year. Indicators such as channel inventory and brand inventory have improved from the slump last year, and a rebound in demand can be expected in the second half of the year. However, commercial IT panels are being purchased quite cautiously due to high inflation and economic uncertainties, while consumer IT panels can be expected to perform better.
In the display sector, there has been an observed increase in prices for gaming monitors, but it is unlikely to see a large-scale replenishment like in the TV market due to sufficient supply of IT panels and increasing production capacity in China. There is limited room for a significant price increase, but consumer displays may experience a small rebound, unlike commercial displays.
As for TVs, it is expected that the cost of production will surpass cash cost in May and June, leading panel manufacturers to increase their production rates. The extent of this increase will be crucial, as it could potentially drive panel prices higher or stall the price increase altogether. Production increase poses a significant uncertainty for supply and price hikes, with the third quarter remaining a key period that will depend on demand. If China returns to cash levels, higher production rates could be a potential risk.
Utilization rate
According to TrendForce, global panel manufacturers had a production capacity utilization rate of around 67%-68% in the first quarter, which is expected to increase to 73%-74% in the second quarter. The third quarter is conservatively estimated to reach utilization rate of nearly 80%.
China Dominates the LCD Market
As Samsung and LG Display gradually withdraw from the LCD market, Chinese panel manufacturers continue to expand their market share. This year, the global shipment volume for TV panels is expected to reach 70% market share.