LCD panel quotes stand little chance of rebounding in March, as the low season will continue and inventory levels in the end market remain relatively high, according industry observers.
The year 2008 started with expectations that panel supply will remain tight through the year. Clients have been aggressively stocking their inventories, with players in the panel industry looking forward to a rebound in panel prices starting in March.
But some industry observers have recently suggested that panel prices are unlikely to rise next month as expected. The buildup of panel stock means that their inventories are already high. As the low season will continue through the beginning of the second quarter, demand may not significantly increase in March, which means a boost in prices is not likely, the observers said.
Since the beginning of the first quarter, monitor and notebook panel prices have dropped on slower demand from the end market. According to WitsView, monitor and notebook panel prices dropped an average of US$1-2. Prices for monitor panels in the 22-inch widescreen segment are expected to continue declining because of increased supply in March. While supply of 19-inch widescreen panels will be tight next month, 20-inch panel prices will stay flat.
As for TV panels, pricing in the 32-inch and smaller segments has been stable on continued strong demand, and demand will remain strong in March. But prices of larger sized TV panels will continue trending downward, the observers remarked.
LCD panel prices may not rebound in March