LCD TV panel prices may stage a rally in early 2020 thanks to an improved supply-demand balance, with the upward spiral to continue into the second quarter and quotes for mainstream panel sizes likely to rise about 20%, according to industry sources.
Efforts by major panel makers, notably by Korean players, to constrain their output have contributed to the improvement from the supply side, said the sources.
Samsung Display will continue to reduce its panel output from its 8.5G lines in 2020, having slashed the production of its 8.5G lines by 125,000 substrates a month in 2019, said the sources, adding that the supply of LCD TV panels from Samsung Display would be reduced by 28% in 2020.
LG Display has also been keen to lower its LCD panel output, cutting its area shipments for TV applications by 35% in 2020, the sources estimated.
The massive production cuts in Korea will help offset new capacity coming out from BOE Technology's 10.5G line and Chongqing HKC's 8.5G in 2020, according to China-based Sigmaintell Consulting.
As a result, area shipments for global TV panels are expected to edge up a mere 1.7% in 2020, the lowest growth rate in five years, following a 4.6% increase estimated for 2019, said the consulting firm.
Prices of TV panels sized in 32-, 43-, 50-, 55- and 65-inch will gain support, rallying by about 20% in the first half of 2020, some market watchers estimate.
Article translated by Steve Shen
