Why do LCD panels continue to rise in price globally

Issuing time:2021-04-23 10:45

Since June 2020, LCD panel prices continue to rise. The price of LCD panels of all sizes will continue to rise in 2021. Global demand for LCD panels remains strong despite the fact that most mobile phones have been upgraded to OLED screens and OLED screens are a priority for smart TVs. According to industry chain sources previously, the first quarter of this year global LCD panel prices are expected to rise another 10 percent. LCD panel prices have risen for eight straight months, setting up the longest streak of price increases in nearly a decade. The main reason for the increase is the imbalance between supply and demand.

Demand side: domestic and foreign market demand continues to be strong, LCD panel supply exceeds demand.

In the first half of 2020, affected by the COVID-19 epidemic, the scale of home office and online education has expanded, and the shipments of laptop and tablet devices have increased substantially under the background of people's difficulty in going out. Demand for large screens at home to watch video and play games also increased, adding to the momentum of rising prices.

Supply side: LCD production capacity decline, insufficient supply capacity

Suppliers' capacity and delivery times were also limited during the outbreak. Most factories have been out of production for one to two months, LCD production capacity is limited, resulting in the lack of capacity to cope with the market outbreak, LCD panel supply is in short supply, causing the market to rise for many months. LCD manufacturing is divided into two ends: one is the front end of the LCD panel, which is produced in an unmanned workshop and is not affected by the epidemic; At the other end is the back end of the LCD panel, which requires more manpower and is more affected by the outbreak.

Does middleman store goods aggravate the price?

In the electronic components industry, price increases are always accompanied by the question of "stockpiling" of intermediate channels. It is worth noting that China's LCD market has been dominated by domestic panel makers, with BOE as the world's largest LCD supplier and Huaxing Optoelectronics in the top five. Whether it is panel factory or terminal factory, the market is increasingly concentrated in the hands of big brands, and small brands are gradually eliminated. The production capacity of these leading panel factories is mainly consumed by the end customer, which adopts the mode of direct supply. The characteristic of LCD panel production line is: the monthly output of the panel factory must be sold as far as possible in that month, and the panel factory does not have the possibility of hoarding goods. From the perspective of LCD dealers and traders, their share and influence in the panel industry are small, even if individual manufacturers hoard, it is unlikely to move the overall market price movement.

The shortage of LCD raw materials has led to a steep rise in prices

The year 2021 begins, and to everyone's surprise, the price of raw materials is rising faster than the temperature. LCD screen as one of many electronic products. Last October, RGB packaging devices, LCD display drive IC, PCB board, and even steel, plastic, glue and other upstream raw materials prices continued to rise, copper clad plate manufacturers in November and set off a "price offensive", the increase of about 10%, especially prominent impact on LCD display products.

Recently, a number of research institutions released panel price vane briefing, is expected to global LCD panel market supply will continue to the second quarter. Supply continues to be tight, driving the price strategy of the head panel manufacturers to become aggressive, February to March the mainstream size of product prices will maintain a large increase.



Business Hotline:


Home       About Us       Qualification       Products        Product List        News       Contact Us