Covid-19 affect Outbreak LCD panel production supply panel Markets around the world or usher in a new turning point

China at least five LCD factory production slowdown.Along with companies such as samsung and LGD to reduce or to shut its measures such as LCD panel factory, reduce the LCD panel production capacity.Upstream LCD related industry insiders predict that after cut supplies, will appear so transient global LCD panel prices trend.However, after the outbreak under control, LCD panel prices will drop.

Under the bigger driver, despite the global TV sales stagnated, but the global TV panels delivery area remained steady growth.Supply side, under the pressure of continuing losses, South Korea and China Taiwan panel makers first to adjust production capacity.Samsung display part has withdrawn from production capacity, LGD have withdrawn from the part of the capacity not only, and has announced that it would shut down in 2020 South Korea local production line.

As South Korea manufacturer of production and capacity to enter into the end of mainland, affected by the outbreak, the global LCD panel prices rise in 2020, the company to survive and maintain the normal operation of the panel makers bring huge profits.

Epidemic affect supply stimulus panel prices

Outbreaks, which leads to the upstream and downstream insufficient manpower intensive module factory construction, make the panel limited supply.For complex industrial chain link panel industry caused no small impact.From the panel factory shipment, panel for 2 month after the section capacity loss serious, will have a great influence on the quarter panel shipment.At the same time, the outbreak was significantly affect the terminal retail markets.

Epidemic makes China's retail market rapidly cooling, including smart phones, the demand of intelligent home appliance such as TV, but the terminal consumer market demand changes to panel purchasing demand adjustment takes time.According to the group of wisdom consulting the latest LCD TV panel, according to a report by the new type of coronavirus pneumonia outbreak, LCD TV panel prices rise in February 2020, slightly higher than expected, 32 inches up $1, 39.5, 43, 50 inches up $2 each, 55, 65 - inch each get a $3.The agency also predicted at the same time, LCD TV panel is expected to maintain the upward trend in March.

In the short term, the new crown pneumonia outbreak can produce certain influence for panel factory production capacity, but resulted in panel upstream supply chain resume work delay, this may affect the panel supply in March, at the same time ready for the superposition of downstream demand, the indirect drive panel prices accelerated.

Related industry analysis, said in a variety of factors, good contrast, contrarian higher panel industry is expected to seize the wave upward.At the same time, the tension between supply and demand has prompted increasing capacity layout, panel domestic enterprises can panel markets around the world, or for a new turning point.

LCD panel industry will usher in a turning point for a long time

In 2019, the industry a universal operating losses, mainstream size panel prices below their cash cost of South Korea and Taiwan manufacturers.Under the pressure of continuing losses, do more, thanks to, South Korea and Taiwan panel makers first to adjust production capacity.Samsung display SDC in 3 q19 L8 production line shut down 80 k - 1-1 of the quantity, production line will be L8-2-1 close to 35 k;CPT CPT will L2 production line of 105 k capacity were closed;Lg display LGD in 4 q19 P7 line close to 50 k, the P8 line close to 140 k.

According to the SDC and LGD strategy, they will all gradually withdrew from the LCD production capacity, only keep the LCD production capacity.At present, the CEO of LGD has announced that South Korea local LCD TV panels on CES2020 capacity will all exits, SDC will gradually withdraw from all the LCD production capacity in 2020.

The LCD panel line, LCD capacity expansion also has been drawing to a close.Boe 10.5 generation line in wuhan will be 1 q20 put into production, production capacity is expected to take 1 year climbing time, this will be the last one of boe LCD production line;Sun in mianyang of 8.6 generation of line, will begin in 1 q20 climbing capacity, due to the sun in the continuing losses, estimated in the future continue to invest less likely;Huaxing photoelectric shenzhen 11 generation line will be in 1 q21 put into production, this article will be the last one huaxing photoelectric LCD production line.

global LCD panel production capacity schedule will be affected by the new crown pneumonia outbreak.On the whole, the global LCD TV panels supply capacity increment is limited, the supply and demand tension prompted a wave of panel industry prices boom.Tension between supply and demand of the environment, or to increase layout panel domestic enterprises can capacity.

Prices, in addition to short-term panel display panel industry pattern also is undergoing major transformation, namely the LCD panel makers with cost competitiveness, the new production line production efficiency as well as the supporting industrial chain advantage are overtaking south Korean manufacturers.For Beijing Oriental, huaxing photoelectric and other related enterprises, before the outbreak, dedicated to the market, adjust good state and strategy may be able to win more share.

At present, the panel on the LCD panel technology has caught up with Japanese and Korean companies, and will focus on the layout on the OLED technology.Although basically master the middle reaches of the OLED panel production capacity in the tradition such as samsung, LG, sharp, JDI LCD manufacturers, however, Chinese panel makers are also considerable efforts and growth, Beijing east, deep tianma and flexible blue screen 3 d curved surface glass technology, has started to OLED production line layout.

Than the LCD TV market in the global occupied the mainstream position, OLED panel and the influence of the end products market is quite limited.As a new generation of display technique, although OLED led panel industry upgrading, but OLED panel in the popularity of large size TV and smart apparel market for fashion.

Analysis related to the personage inside course of study says, 2020 panel prices have to carry out the hammer, if prices rebound trend, the panel industry leading enterprise performance is positive.With the popularity of 5 g downstream terminal application, consumer electronics panel incremental demand will also increase.With the new application and new technology matures, increasing government support, domestic LCD industry is worth looking forward to this year.In the future, the global LCD market will gradually evolve into South Korea, China, two of the competitive landscape.