Author: MoneyDJ | Published Date: December 27, 2024, 8:40 | Categories: International Trade, Television, Panel
China's Demand Boosts LCD TV Panel Prices, Utilization Rates Rise
Supported by strong demand from China, the prices of LCD panels for televisions have stabilized. In response to a recovery in sales, panel manufacturers have increased their utilization rates (capacity utilization).
According to a Nikkei report on December 27, demand from China has underpinned the stabilization of benchmark LCD TV panel prices. In pricing agreements for November 2024 between panel manufacturers in Taiwan and China and TV manufacturers, the wholesale price for benchmark large-sized TV panels—55-inch open cells (semi-finished products without backlight)—stood at approximately $125 per piece. Similarly, the price for smaller-sized 32-inch panels remained at around $35 per piece. Both prices were unchanged from October levels, marking the second consecutive month of stability. LCD TV panel prices are typically negotiated monthly between Asian panel manufacturers and TV producers.
The report noted that TV LCD panel prices had declined during the summer due to weak economic conditions in China. However, current demand is being supported by China's subsidy policies and the e-commerce "Double 11" shopping festival. According to U.S. research firm DSCC, panel manufacturers have increased their utilization rates in response to recovering sales. The global utilization rate for TV LCD panel factories rose to 83% in November, up six percentage points from 77% in October.
Regarding December utilization rates, DSCC's Asia representative, Yoshio Tamura, commented, "They are expected to remain at November levels." Some market analysts believe that the anticipated imposition of high tariffs on Chinese imports by the next U.S. President, Donald Trump, has driven an increase in TV shipments to the U.S. to avoid future tariffs.
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