Author: MoneyDJ | Published: December 9, 2024, 8:30 AM | Categories: International Trade, Television, Panels

Panel manufacturers have scaled back production and lowered utilization rates, halting the decline in TV LCD panel prices and averting a fourth consecutive month of price drops.

According to a report by Nikkei Asia on December 6, reductions in production by panel manufacturers helped stabilize the prices of benchmark TV LCD panels. In pricing agreements reached in October 2024 between panel manufacturers in Taiwan, China, and TV makers, the wholesale price of large-size benchmark products like 55-inch open-cell panels (unfinished products without backlights) remained around $125 per unit, while the price for smaller 32-inch models stayed at approximately $35 per unit—unchanged from September. These agreements prevented a fourth straight month of price declines. TV LCD panel prices are determined monthly between Asian panel manufacturers and their clients (TV makers).

The report highlighted that weak TV sales, especially in China, had exerted downward pressure on TV LCD panel prices, resulting in three consecutive months of decline from July to September. However, production adjustments, including cuts for China's National Day Golden Week in October, improved the supply-demand balance. The global factory utilization rate for TV LCD panels dropped to 77% in October, down 6 percentage points from the previous month.

According to U.S.-based market research firm DSCC, China's "Double 11" shopping festival this year is expected to boost TV sales by over 10% year-over-year. Yoshio Tamura, DSCC’s Asia representative, noted, "Global TV LCD panel factory utilization rates in November are likely to rebound to 81%, 4 percentage points higher than earlier projections."

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