"LCD TV Panel Prices Expected to Continue Rising in Q2"

The upward trend in liquid crystal display (LCD) TV panel prices that began in February is expected to continue through the second quarter.

According to market research firm Display Supply Chain Consultants (DSCC) on the 7th, LCD manufacturers adjusted their factory operating rates from 85% in the third quarter of last year to around 76% in both the fourth quarter and the first quarter of this year.

The total LCD thin-film transistor (TFT) input volume decreased by 11% in the fourth quarter of last year and by 2% in the first quarter of this year compared to the previous quarter.

DSCC analyzed that this limitation on manufacturers' operating rates, along with major sporting events such as the Paris Olympics that drive increased demand for home appliances, led to the rise in panel prices.

[Image source=AFP Yonhap News]

Looking at the trend in LCD TV panel prices, prices increased by double digits on average in the second and third quarters of last year, then fell by an average of 1.9% in the fourth quarter. Prices remained stable on average in the first quarter of this year, but an increase is expected in the second quarter.

DSCC explained, "Prices in the fourth and first quarters followed a 'V' shape, declining from October to December to reach a low point, then rising from January to March."

They further estimated, "Since prices in the second quarter start at the top of the 'V' and increase from there, the average price in the second quarter is expected to be 5.5% higher than in the first quarter."

However, this upward trend may be short-term, so continuous production management is necessary. DSCC stated, "Panel manufacturers need to maintain restrained production methods in the second half of the year as well to avoid another downturn."