LCD TV Panel Prices Stable Amid Supply-Demand Balance, Shifting Procurement Strategies

The global LCD TV panel market has maintained a short-term balance between supply and demand, with panel prices remaining stable in May. This stability is evident across various panel sizes, including 32-inch, 50-inch, and 55-inch panels, which have all seen consistent pricing. The demand from Chinese brands for panels has started to adjust, while international brands have shifted their procurement strategies from aggressive to conservative. This shift in strategy is likely a response to the current market conditions, where the supply and demand dynamics are in equilibrium.

The 32-inch panels, particularly in secondary markets, have seen a slowdown in inventory demand, leading to a stable average price in May. The 50-inch panels, on the other hand, have shown overall balanced supply and demand, contributing to the stable pricing trend. The 55-inch panels have experienced a slight increase in inventory pressure within the supply chain, but this has not significantly impacted the average price, which remains stable. For large-sized panels, the demand has been affected by previous overconsumption, leading to a cooling down in brand procurement needs, but the average price has remained stable.

Manufacturers have been controlling production to buffer the global LCD TV panel market's supply and demand dynamics, but the control measures have been less effective than anticipated. This mismatch between production control and declining demand could impact the television market post-promotional season. On the demand side, Chinese brands are adjusting their panel needs, while international brands are adopting a more cautious procurement strategy. This shift is influenced by weakening macroeconomic policies, such as fluctuating tariff policies in North America and reduced incentives from China's subsidy policies, which have led brands to focus more on demand-driven inventory management rather than reactive stockpiling.

Additionally, secondary markets are entering a destocking phase. On the supply side, leading manufacturers are reducing production during holidays, and the stable demand for mid-to-small-sized application panels is further constraining TV panel production capacity, resulting in a month-on-month decrease in TV panel production area. This careful management of production and inventory reflects the market's efforts to maintain stability amidst changing demand patterns and economic policies.