LCD panels are in short supply and BOE will rise another $5 to $10 a month in Oct

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Author : BOE LCD supplier
Update time : 2020-09-28 13:09:31
According to a report in Taiwan's Economic Daily, the supply of LCD panels falls short of demand. Leading BOE is expected to rise by another US $5 to US $10 in October, with a maximum increase of about 10%, which is higher than market expectations. It is expected that INNOLUX, AUO and other factories will also reflect the market mechanism to raise prices. Panel quotes rose by more than 10% in the third quarter, and operators got rid of losses. Quotes in the fourth quarter continued to boost the throttle, assisting INNOLUX and AUO to stabilize their net interest rates by more than 10% in a single quarter. 

Yang Zhuxiang, general manager of INNOLUX, and Peng Shuanglang, chairman of AUO, previously simultaneously released the message of looking at the future of the long panel. Yang Zhuxiang expects that the operation of INNOLUX in the third quarter will be better than that in the second quarter, and there seems to be no problem in the fourth quarter, while Peng Shuanglang is optimistic that the tight supply and demand situation will continue into next year (2021). 

Now BOE has taken concrete action to raise its offer in October, confirming that "the boom is not just shouting", but will be reflected in the fundamentals of the industry through real price adjustment. 

Panel manufacturers pointed out that Samsung and LG display (LGD) withdrew from LCD production, and BOE became the global leader and gained the right to speak. This wave of panel market conditions as the epidemic pushed up the demand for residential economic terminals such as televisions, laptops and tablets is hot and strong. BOE has made every effort to raise prices, and the price increase attitude is more positive. 

It is understood that the recent shortage of laptops, tablets and other IT panels, even Sharp also intends to restart small and medium-sized panel production, large manufacturers actively adjust production capacity to IT panels, crowding out large-size panel output, making October quotation increase stronger than expected, as high as $5 to $10, the highest increase of about 10%. 

Xie Qinyi, senior research director of Omdia display department, recently confirmed that he had never seen TV panel prices rise as ferociously as in the third quarter of this year. 

According to a survey by the display Research Office of TrendForce, panel quotations in the third quarter showed an increase rarely seen in recent years, of which the price of notebook panels rose by 510% in the whole quarter, the average price of TV panels rose by more than 30%, and the supply of large-size panels exceeded demand by only 0.2% in the fourth quarter, which means that the supply of some applications will continue to fall short of demand, and it is estimated that panel prices still have 10% room to rise.
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