Large-size LCD panel prices remained stable in February despite weak demand

According to the liquid crystal (LCD) price tracking report of IHS iSuppli Corporation, in spite of weak demand, the prices of large-size LCD panels for TVs, monitors, and notebook PCs remained stable in February, dropping by 0.5 percentage points.

The overall price of large-size LCD panels in February only fell by 0.5%, which was smaller than the 0.9% in January, as shown in Figure 1. The average price drop in the past four months was 0.5%, indicating that the market has stabilized. From August to October 2011, large-size panel prices fell by 3-4% per month. The large size panel refers to a size of 10. x inch or larger panel.


As manufacturers continue to control production and panel inventory, prices are expected to remain stable in March. However, as the global economy remains bleak, there is little room for price increases. It is expected that the price decline will slightly expand in April, reaching 0.8%. Most of the decline will come from LED backlight panels to reduce the price gap between LED panels and CCFL panels.

Even so, IHS believes that considering the positive news and negative news in the LCD panel industry over the past few months, it is also commendable that the prices of large-size LCD panels remain relatively stable.

For example, although overall sales during the 2011 holiday season were better than expected, television sales related to the February American Football Championship Finals were unimpressive. As channel stocks have dropped to a very low level at the time, in the face of eager buyers, the number of low-priced models was insufficient, affecting sales. This year's Chinese market, the Spring Festival sales situation is not satisfactory, further suppress the panel market space.

Inventory and supply issues also sent confusing signals to the market. Due to the uncertainties in the global economy, brand manufacturers are still reluctant to increase their inventory, even if they are expected to introduce new products. New products are usually launched near the end of the first quarter, which is regarded as the main factor driving the demand for large-size LCD panels at this time. Although significantly lower than last year's 32-day level, overall large-size LCD panel inventory was 23.6 days on February 1, which is higher than 21.8 days on January 1.

At the same time, some panel makers reported an increase in production in February, although the shortage of hard disks caused by flooding in Thailand last year will affect the production of monitors and laptops in the first half of 2012. Monitors and notebook computers are two of the three application areas for large-size LCD panels.

Panel suppliers continue to adjust their inventory to accommodate the sluggish panel demand. In February, the loading rate of panel plants is expected to remain at around 75%, slightly lower than the level of nearly 80% in December, but higher than that in January. 73%.

From the perspective of various application areas, the prices of notebooks and TV panels in February decreased by 0.6% from January. Due to the tight supply, the price of monitors dropped by only 0.1%.

As of February 1, the inventory of large-size LCD panels for TVs was 25.8 days, monitor panels were 23.7 days, and laptop panels were 22.0 days.

Author Sweta Dash is senior director of liquid crystal displays at IHS