lowered lcd panel prices made in china

Nikkei Asia reported on the 21st that the price of LCD panels for Smart TVs kept falling. Among the prices in June, that has been determined by panel manufacturers in China, Taiwan, South Korea, and TV manufacturer, the 55-inch Opencell price has decreased. The wholesale price of semi-finished products without backlight fell around 6 percent from May to around $90. The price has been declining for 11 consecutive months, continuing to rewrite the record low since the survey began in 2006.  The price of 32-inch products for small-size TVs also dropped by 15 percent, setting a new record low.

The report points out that the price of TV LCD panels will continue to fall. Apparently, one of the strong reasons is continuous inflation. The continuous inflation has been deeply engulfing the world. The continuous health concerns, and the war, are leading to a major slowdown in the economy. There are rising doubts about the demand for TVs as the customer’s needs are changing. For instance, people are now considering essential goodies rather than spending on electronics when they already have one. For example, one user with a good Smart TV will think twice before upgrading to a new model just because yes. If the old model is serving well, then there is no real reason to upgrade due to technological upgrades.

However, there is still hope for small TVs. According to reports, panel factories in mainland China are reportedly expanding the production of 32-inch LCD panels. In the past, 55-inch products were the main priority due to their higher profit margin. However, the 55-inch panels now sit in unsatisfactory market conditions. Therefore, the factories will expand the supply of small products. After all, these smart TVs are commercialized at lower prices. Furthermore, some users are willing to save money no matter the display’s size.

Samsung, which always has been a strong maker in the LCD business, is shutting down the division.The company will focus on OLED and upcoming technologies. However, we don’t know if the costlier OLED TVs are in a better situation.

LCD TV panel prices have stopped falling after sliding below suppliers" cash-cost levels, according to industry sources. Additionally, aggressive production cuts by panel makers also have helped bring a stop to falling prices.

According to Pan Tai-chi, general manager of the TV Business Center of Innolux, TV panel inventories at most TV vendors and channel operators have bottomed out, and correspondent TV panel prices have risen since the second half of October.

Sales dynamics for TVs and monitors with high CP (cost-performance) ratios have started gaining momentum recently as current panel prices have made high CP display products more affordable, Pan said.

It is worth observing whether the sales of consumer electronics products during the forthcoming year-end shopping season in China, the US and Europe are robust enough to stir up panel demand in the first quarter of 2023, Pan commented.

TOKYO -- Bulk rates for liquid crystal display panels have crashed by 10-20% since the start of the year depending on size, amid struggling sales of flat-screen televisions in the U.S. and China.

Large-lot buyers are paying roughly $67 apiece in the benchmark 32-inch category for open-cell panels, which do not contain backlighting. This price, down 1% from October and off 11% year-to-date, marks a 16-month low.

LCD panel prices have risen for 4 months in a row because of your home gaming? Since this year, the whole LCD panel market smoke. Whether after the outbreak of the epidemic, LCD panel market prices rose for four months, or the panel giants in Japan and South Korea successively sold production lines, or the Chinese mainland listed companies frequently integrated acquisition, investment, and plant construction, all make the industry full of interesting.

LCD panel pricesare already a fact. Since May this year, LCD panel prices have risen for four months in a row, making the whole industry chain dynamic. Why are LCD panels going up in price in a volatile 2020? The key factor lies in the imbalance between supply and demand.

For larger sizes, overseas stocks remained strong, with prices for 65 inches and 75 inches rising $10 on average to $200 and $305 respectively in September.

The price of LCDS for large-size TVs of 70 inches or more hasn"t budged much. In addition, LTPS screens and AMOLED screens used in high-end phones have seen little or no increase in price.

As for October, LCD panel price increases are expected to moderate. The data shows that in October 32 inches or 2 dollars; Gains of 39.5 to 43 inches will shrink to $3;55 inches will fall back below $10; The 65-inch gain will narrow to $5.

During the epidemic, people stayed at home and had no way to go out for entertainment. They relied on TV sets, PCS, and game consoles for entertainment. After the resumption of economic work and production, the market of traditional home appliances picked up rapidly, and LCD production capacity was quickly digested.

However, due to the shutdown of most factories lasting 1-2 months during the epidemic period, LCD panel production capacity was limited, leading to insufficient production capacity in the face of the market outbreak, which eventually led to the market shortage and price increase for 4 consecutive months.

In fact, the last round of price rise of LCD panel was from 2016 to 2017, and its overall market price has continued to fall since 2018. Even in 2019, individual types have fallen below the material cost, and the whole industry has experienced a general operating loss. As a result, LCD makers have been looking for ways to improve margins since last year.

A return to a reasonable price range is the most talked about topic among panel makers in 2019, according to one practitioner. Some manufacturers for the serious loss of the product made the decision to reduce production or even stop production; Some manufacturers planned to raise the price, but due to the epidemic in 2020, the downstream demand was temporarily suppressed and the price increase was postponed. After the outbreak was contained in April, LCD prices began to rise in mid-to-late May.

In fact, the market price of LCD panels continued to decline in 2018-2019 because of the accelerated rise of China"s LCD industry and the influx of a large number of local manufacturers, which doubled the global LCD panel production capacity within a few years, but there was no suitable application market to absorb it. The result of excess capacity is oversupply, ultimately making LCD panel prices remain depressed.

Against this background, combined with the impact of the epidemic in 2020, the operating burden of LCD companies in Japan and South Korea has been further aggravated, and it is difficult to make profits in the production of LCD panels, so they have to announce the withdrawal of LCD business.

business in June 2022. In August, Sharp bought JDI Baishan, a plant in Ishikawa prefecture that makes liquid crystal display panels for smartphones. In early September, Samsung Display sold a majority stake in its SUZHOU LCD production plant to Starlight Electronics Technology, a unit of TCL Technology Group. LGD has not only pulled out of some of its production capacity but has announced that it will close its local production line in 2020. According to DSCC, a consultancy, the share of LCD production capacity in South Korea alone will fall from 19% to 7% between 2020 and 2021.

It is worth mentioning that in industry analysis, in view of the fact that Korean companies are good at using "dig through old bonus - selling high price - the development of new technology" the cycle of development mode, another 2020 out of the LCD production capacity, the main reason may be: taking the advantage of China"s expanding aggressively LCD manufacturers, Korean companies will own LCD panel production line hot sell, eliminating capacity liquid to extract its final value, and turning to the more profitable advantage of a new generation of display technologies, such as thinner, color display better OLED, etc. Samsung, for example, has captured more than 80% of the OLED market with its first-mover advantage.

From the perspective of production capacity, the launch of LCD tracks by major manufacturers in Japan and South Korea must reduce some production capacity in the short term, which to some extent induces market price fluctuations. In the long run, some of the Japanese and Korean LCD production capacity has been bought by Chinese manufacturers, coupled with frequent investment in recent years, the overall capacity is sure to recover as before, or even more than before. But now it will take time to expand the production layout, more or less will cause supply imbalance, the industry needs to be cautious.

The LCD panel industry started in the United States and then gradually moved to Japan, South Korea, China, and Taiwan. At present, the proportion of production capacity in The Chinese mainland has reached 52% in 2020, and there are leading LCD panel products in China represented by BOE, Huxing Optoelectronics. Meanwhile, the production capacity layout of BOE, Huike, Huxing Optoelectronics, and other manufacturers has been basically completed, making industrial integration a necessity.

On the one hand, South Korean enterprises out of the LCD track, the domestic factory horse enclosure, plant expansion action. While LCDs may not sell as well as "upstart" flexible screens, respondents believe they are still strong enough in the traditional home appliance market to warrant continued investment. Zhao Bin, general manager of TCL Huaxing Development Center, has said publicly that the next-generation display technology will be mature in four to five years, but the commercialization of products may not take place until a decade later. "LCD will still be the mainstream in this decade," he said.

On the other hand, there is no risk of neck jam in China"s LCD panel industry, which is generally controllable. In mainland China, there will be 21 production lines capable of producing 32-inch or larger LCD panels by 2021, accounting for about two-thirds of the global total. In terms of the proportion of production capacity, the Chinese mainland accounted for 42% of the global LCD panel in 2019, 51% this year, and will continue to climb to 63% next year.

Of course, building factories and expanding production cannot be accomplished overnight. In the process of production capacity recovery, it is predicted that there will be several price fluctuations, and the cost may be passed on to the downstream LCD panel manufacturers or consumers when the price rises greatly, which requires continuous attention.

Between 2008 and 2013, China’s fledgling solar-electric panel industry dropped world prices by 80 percent, a stunning achievement in a fiercely competitive high-tech market. China had leapfrogged from nursing a tiny, rural-oriented solar program in the 1990s to become the globe’s leader in what may soon be the world’s largest renewable energy source.

One clear result is that the U.S. solar industry was hit hard by plunging prices and can no longer supply more than a third of rapidly growing U.S. appetite for solar panels, according to a recent Department of Energy report exploring “opportunities and challenges” of solar manufacturing.

But if the United States innovates, cuts costs and nurtures newer technologies, it might emerge as the world’s second largest solar panel manufacturer by 2020, the report concludes.

The timeline of China’s rise began in the late 1990s when Germany, overwhelmed by the domestic response to a government incentive program to promote rooftop solar panels, provided the capital, technology and experts to lure China into making solar panels to meet the German demand.

China, according to Chung, had “dabbled” in solar energy only as a source of electricity to help impoverished rural areas remote from its power grid. But then some of its pioneering companies became intrigued by the income that manufacturing solar panels for export to Germany might bring in. When Spain and Italy began their own rapidly expanding solar incentives, adding to the demand, China began scouring the world, hiring more solar experts and shopping for machinery and polysilicon supplies to meet the expected surge of orders for solar panels.

Chung notes that China’s government was also generous in other ways. Making solar panels is difficult. To make them efficiently, the business requires large, semiautomated factories.

The result was that in building up the world’s largest solar manufacturing industry, one that became the price leader in most aspects of the world’s market—beginning with cheaper solar panels—China had helped create a worldwide glut. There were roughly two panels being made for every one being ordered by an overseas customer.

According to Ronen, the expert from George Washington University, China then decided to follow Germany’s lead again, developing its own “feed-in tariff” that paid handsome prices for electricity generated by rooftop solar. The result was a surge in domestic demand for solar.

“[W]hat’s left of the solar universe is showing severe signs of stress, and given the tricky accounting and the prevalence of China-based companies among the panelmakers, that stress may very well be understated,” wrote Jim Collins in a recent market analysis for Forbesmagazine.

“Another side of the coin, from my perspective,” he said, is 250,000 American jobs in the solar panel assembly, installation and maintenance business, many of which wouldn’t have happened without the push from China that dramatically lowered solar module prices.

Chinese display producers, which have massively rolled out low-priced products to dominate the global liquid crystal display (LCD) panel market, are struggling as LCD panel prices have plunged. They cannot even survive without the Chinese government’s subsidies.

Chinese display companies, such as BOE, Caihong Group, GoVisionox (GVO), CEC Panda, posted poor results in the first half of this year due to lower LCD prices, according to market research firm IHS Markit on Oct. 9. LCD TV panel prices had continued to fall until last month since the third quarter of 2017.

LG Display was hit hard by the drop in LCD prices, but the Chinese firms which have driven South Korean competitors out of the market with low-priced products, are also facing a tough situation now.

BOE, the largest LCD panel producer in China, posted US$68 million (81.59 billion won) in operating profit in the second quarter but US$60 million (71.99 billion won) of it was subsidies from the Chinese government. Considering the fact that BOE"s sales came to US$4.19 billion (5.03 trillion won) in the second quarter, the firm’s actual operating profit to sales ratio, excluding subsidies, is only 0.2 percent. IHS Markit said, “A considerable portion of the Chinese government’s subsidies is regarded as a non-operating income. If subsidies are all excluded, Chinese companies may actually run into red figures.”

The situation is very much the same with Caihong Group, the parent company of CHOT. The group recorded an operating profit of US$13 million (15.61 billion won) in the second quarter thanks to the government’s subsidies worth US$69 million (82.86 billion won). Excluding the subsidies, it showed a loss. GVO had an operating profit of US$105 million (126.11 billion won) in the second quarter but more than US$104 million (124.90 billion won) of them came from the government. It cannot even stay in business without the government’s subsidies. Tianma has been receiving the smallest amount of the government’s subsidies among Chinese display panel producers but 32.7 percent, or US$19 million (22.81 billion won), of its operating profit of US$58 million (69.65 billion won) in the second quarter came from the government.