Recently, Aowei Ruiwo announced the March TV panel and the whole machine price express, the express report said that the panel factory turnover rate in February remained high, the panel supply continued to be loose, and the panel price continued to decline. So far, this is an 8-month consecutive decline since the panel price began to decline last June.
According to the report given, the small size panel is close to stopping the decline, and although the downward range of the large size has narrowed, the amplitude is still very large. Among them, the 32-inch stop loss was flat, 39.5, 43 inches fell by 1 US dollar; 50, 55 inches fell by 3 US dollars, compared with the 4 US dollars in February, the decline was narrowed; the 65, 75 inches fell by 6 US dollars, and the decline in February was 8 US dollars.
It is not difficult to see that the decline in the price of small-size panels is nearing the end, and although the price of large-size panels has declined significantly, the decline has narrowed compared to the previous February. Affected by the price of the panel, the price of the TV machine still maintains a downward trend, and the largest decline is 75 inches, with a decline of about 21 yuan.
Since the epidemic, due to the impact of the "home economy", the demand for global TVs has continued to increase, which has made lcd panels continue to rise in prices for nearly a year after the epidemic. With the gradual slowdown in demand, the cooling of the home economy, the demand for screen display equipment gradually decreased, and the price of panels has also ushered in a continuous price decline and adjustment.
On the whole, the performance is that the demand for small-size panels is gradually picking up, which has led to the price of small-size panels to stop falling and pick up, and small-size panels have been actively purchased by machine factories and agents, and the demand continues to be strong. On the contrary, in the case of large-size panels in the case of sluggish terminal shipments, brand manufacturers are cautious about placing orders, and the willingness to pull goods is not strong.
On the supply side of the industrial chain, panel factories allocate capacity to shift more production capacity to small sizes with better profitability, while large-size shipments are still under pressure, and the overall supply and demand situation has not changed.
For end consumers, the decline in panel prices directly brings benefits, and consumers can buy cheap TVs again. However, it is not a good thing for the entire industry, and I am afraid that a new round of internal rolls in the industry will come.
Because the mainland is currently a major producer of LCD panels, the shipment area of LCD TV panels of BOE, Huaxing Optoelectronics and Huike in the first half of 2021 accounted for 50.9% of the total global shipping area in the current period, and the center of gravity of LCD panels has shifted to China. In addition, coupled with Samsung, LGD, Panasonic and other companies with LCD panel production lines have sold and stopped production, this move has made the mainland become a large country in LCD panel shipments.
Is this really a good thing? Not necessarily.
With the transfer of more and more LCD production capacity to the country, the mainland LCD industry chain will fall into the expansion of production capacity, the takeover of the LCD panel production line will be more and more, although in the short term to achieve capacity expansion, increase the actual assets of enterprises, but also increase the competition of domestic panel companies, which will be in a new round of internal volume period for Chinese enterprises.
In addition, the current LCD panel overcapacity, which will inevitably lead to oversupply of liquid, pricing power has been mastered in the main engine plant, which is a very big challenge for panel companies, how to digest too much production capacity and maintain profits, which is a very difficult to balance the point, coupled with the fierce competition of Chinese LCD panel companies, internal consumption, internal volume will also become very serious.
In fact, not only the inner coil, but more importantly, the LCD panel has now fallen into the low-price range, that is to say, the LCD panel production is not profitable, and even some production lines continue to lose money. And other head brands have turned to the next battlefield, such as OLED, Mini/Micro LED, QLED, etc., LCD TVs will certainly not be replaced by other display technologies, and the survival cycle of LCD TVs is not known.
Therefore, it is not necessarily a good thing that the mainland has become an industrial power of LCD panels. For consumers, the inner volume of the LCD panel will bring more benefits, and consumers can buy cheap display products again.