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LCD TV Prices Could Have Peaked in July, But Expected to Remain High thru the End of 2021

As expected, LCD TV panel prices slowed to a slight increase in the first half of July, which suggests that global TV set makers, in their bid to improve profit margins, have shifted focus toward increasing area-based shipment volume, cutting back on low-/mid-end TV production (32”, 43”, 50”) and bolstering large-size TV production (55”, 65”, 75”). Meanwhile, IT (PC) panel prices rose 1-2% since the second half of June thanks to an increase in corporate PC demand.  Significant price declines for LCD panels in 2H21 is unlikely, according to WitsView as they expect LCD panel prices to maintain an upward trajectory in 3Q21 and stabilize in 4Q21. Global TV set makers will stock up on LCD panels in Q321 to prepare for Black Friday as well as preemptively order panels in the off-season (Q421) for new model releases in 2022. The global LCD panel supply/demand ratio is expected to inch up from +1.2% in 1H21 to +2.2% in 2H21. Meanwhile, the current IC shortage is expected to persist through 1H22, keeping LCD panel shipments at 85% of total output capacity.