01

LCD TV panel prices have been on a general upward trend since March, and this trend continued in May. CINNO Research believes that although the global demand for LCD TV panels is difficult to recover to the pre-epidemic level due to inflation and other factors, the relatively tight supply and demand situation is still maintained as South Korean manufacturers continue to shut down factories and withdraw from the LCD industry since this year, and the leading panel enterprises in mainland China actively control production capacity. From the perspective of panel manufacturers, the goal is to push panel prices back above the cash cost line as soon as possible and improve revenues as soon as possible.

02

From the supply side, large panel factories continue to control the operation rate and concentrate their production capacity on large-size products, while small panel factories partially take over the lost small-size orders. Although the overall operation rate continues to increase in the second quarter, the growth rate is obviously restrained. Compared with April, the operation rate of G8.5, G8.6 and G10.5 production lines in mainland China in May only increased by about 1 percentage point. The tight supply and demand situation is not only caused by panel manufacturers intentionally controlling production and not struggling with full production, but also by stocking up for promotion festivals such as 618. As LGD continues to reduce LCD capacity this year, it is likely to close and sell existing production lines in the future, and LGE is also actively seeking to stock up. The upward trend is likely to moderate in June.

03

As a response to continued low demand in the future, some panel manufacturers are pushing to ship oversized panels to make up for volume. On the one hand, 32 "and other small and medium-sized size in the hands of the channel business still have a lot of inventory, the price is difficult to significantly pull up; On the other hand, it is not in the long-term interest of panel factories to maintain profits at a lower rate of operation. And for the terminal market, the reasonable price of 85 ", 98 "/100" products can also directly attract consumers to switch with the concept of "giant screen". Therefore, since this year, the whole machine market, the parity giant screen has become a new market segment, has been recognized and accepted by consumers.

04

CINNO Research statistics show that in May, the increase of the main size is expected to narrow slightly, 32 "channel inventory level is high, the demand is reduced, the price is expected to rise 1 dollar, to reach 33 dollars, some small panel factory orders to produce 43", the size is expected to rise 3 dollars, to reach 57 dollars. The 50 "shipment percentage continues to improve, and the estimated price is up $4 to $93. 55 "is expected to rise $7 to $109 due to LGD production cuts and LGE stock. 65 "and 75" are expected to increase by $10 to $153 and $207, respectively, as both supply and demand skew sizes. It is expected that the price increase in June will continue to narrow, after July, the price trend will again come to the crossroads of the game between the panel factory and the whole factory.