Q2 Panel Fell Sharply, 32, 65 吋 To Break Cash Costs
May 21, 2018
In the second quarter, panel demand remained weak, dragging the TV panel to aggravate the decline in April and May. In May, the 32-inch panel fell below 50 US$, while the 65-inch panel dropped under 255 US$. The two sizes are the weakest and are the first to explore cash. cost. On the whole, the TV panel's average decline in the second quarter exceeded 10%. WitsView expects that the downtrend in June will have a chance to converge. The panel price trend is expected to bottom out.
In the second quarter, the panel supply chain continued to destock inventory, and the attitude of pulling stocks remained conservative. As a result, the panel prices fell in April and May. WitsView Research Vice President Qiu Yubin said that the largest decline in the second quarter is the 32-inch panel, a monthly decline of 4 to 5 US dollars, in April to explore 50 US dollars, the May quote came to 45 to 47 US dollars, came to the cash cost . At present, the main supplier of 32-inch panel is the mainland panel factory, so BOE, Huaxing Optoelectronics, and Weike reduced the output of 32-inch panel in May, reducing the margin by about 10-15%, and converting to 49-inch, 55-inch, etc. Large-size panels hope to control the situation of falling prices through production cuts.
Another heavy-hit area is the 65-inch panel. Since the end of last year, due to the expected mentality of BOE 10.5's mass production, the decline was fierce. In May, the single-month decline of US$10, the average price came to US$252-255, which is quite close to 230-250 dollars in cash costs. Other sizes include 40-inch/43-inch, 49-inch/50-inch, 55-inch, and other TV panels. The May decline also has $4-5.
TV panel prices have fallen for three consecutive quarters since the end of the second quarter of last year. WitsView pointed out that the price of TV panels in the second quarter was still in a downward trend, with all sizes falling by over 10%, a decrease of 32吋20～22%,43吋13 to 15%, 49/50吋12 to 14%, 55吋9 to 11%, 65吋14 to 16%. Qiu Yubin said that the brand's procurement strategy was conservative in the first half of this year, and supply chain inventory levels have been decreasing, preparing for the second half of the season. It is expected that the decline in the TV panel in June will be reduced, and the panel decline in the third quarter is expected to bottom out.
In contrast, the IT panel has maintained a gradual downward trend, followed by the back-to-school tide stocking demand, which is expected to converge. The average decline in the NB panel in May was about US$0.1-0.3. As for the monitor panel price, the average price drop was 0.2-0.4 US$.
