May 11, 2024

The market expects TV panel prices to bottom out in May

BOE's new plant production problems have been frequently reported this year. Not only is the world's first 10.5-generation plant production progress unsatisfactory, but Fuzhou's 8.5-generation plant has recently experienced quality problems, production yields are low, and actual output is small. The brand factory began to warm up in April, and the market expects TV panel prices to bottom out in May, and some sizes are expected to stop falling.

BOC's 10.5-generation new plant in Hefei was put into operation in the first quarter. The original 10.5-generation plant mainly produced 65-inch and 75-inch panels, while the Fuzhou 8.5-generation plant locked 43-inch and 55-inch panels, but two new plants. Production progress is not as expected. Recently, the market has heard that the quality of the BOE 8.5-generation plant in Fuzhou has been reduced, and the factory production yield has dropped below 70%. In addition to the 43-inch and 55-inch panels, BOE also decided to add the most familiar 32-inch panel, hoping to increase the yield as soon as possible.

The market expects TV panel prices to bottom out in May

As for the high-profile 10.5 foundry, the current 65-inch and 75-inch panels are all trial-produced in small quantities, but the rate of yield rise is slow, the yield of rumor is far below 50%, and the amount of film is only 7,000-10,000. sheet. The original BOE program began mass production and shipment in March, but because of the low yield, the 65-inch panel, for example, has a total cost of up to $500, which is much higher than the Taiwanese panel maker's cost of only about $300. And now the 65-inch panel price is about 280 ~ 290 US dollars, lower than the cost price, BOE more to do more compensation, the actual output in the first half of the number is very limited. BOE also plans to produce 43-inch panels in the 10.5-generation plant, but the actual production capacity may have to wait until the fourth quarter.

The new capacity of the mainland panel factory has not been opened as expected, coupled with the gradual recovery of downstream cargo kinetic energy, the panel market conditions are expected to pick up. The price of TV panels reversed from last year. The first quarter was still slowing down. The medium-sized TV panels fell by 7% to 10%, and the large-size TV panels fell by more than 10%. Already quite close to the cost price, the price is falling.

From the demand side, the brand's attitude of pulling goods in the first quarter was conservative, and the demand for TV panels in February and March was sluggish, which made the panel prices continue to weaken. However, there will be a wave of promotional activities in the mainland online shopping channel in April, followed by the traditional May 1 Golden Week promotion period, and the mainland brand pulling momentum will rebound from April. In addition, the World Cup is just around the corner, international brands will also begin to distribute goods, and orders in April have increased significantly. Supply chain estimates, TV panel shipments in the second quarter will grow by more than 5% compared to the first quarter, and TV panels are expected to bottom out in May.

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