custom touch screen display.Shipments of TFT LCD panels are at a two-year low. Market survey agency Omdia pointed out that shipments of large and medium-sized TFT LCD panels in July decreased by 12% a month and 7% a year, to only 215 million pieces.

Among them, shipments of large-size panels fell by 10 per cent a month, or about 67.7 million pieces, a monthly low in the past two years. In August and September, the production rate of the panel factory is still at a low level, and shipments may be lower.

Demand for large panels began to deteriorate in Q2 and remained weak in Q3. As a result of the loss caused by the fall in panel prices, panel manufacturers are slashing the rate of production. According to Omdia statistics, shipments of electric panels fell by 12% a month and 36% a year in July, to only 15.8 million pieces, a two-year low. Shipments of tablet panels over 9 inches in July were about 12.2 million, a monthly decrease of 13%. Shipments of monitor panels and TV panels hit a two-year low. Shipments of monitor panels were about 11.9 million pieces, a monthly decrease of 17% and an annual decrease of 16%, while TV panel shipments were about 11.9 million pieces, a monthly decrease of 17% and an annual decrease of 16%.

The turnover of large-size TFT LCD panels fell 4 per cent in July, a sharp drop of 36 per cent compared with the same period last year. Panel prices have been falling rapidly since August last year, resulting in a decline in turnover compared with the same period last year, panel prices continue to fall, and the annual growth rate of panel shipments is expected to continue to decline. However, as panel prices fall below cash costs, the decline will slow in the coming months.

As a result of power cuts in Sichuan, both BOE and Huike sharply reduced their production line production rate in August, although the power shortage has improved, and due to continued weak demand, according to the panel factory’s projection plan, the crop rate will remain low in the coming months. The average rate of production of all BOE production lines in August is about 65.70%. It was originally planned to increase in September, but the actual rate of production in September was further reduced by 5%, and is expected to be maintained until the end of the year. The average production rate of Huaxing Optoelectronics production line in August was about 700.75%, and in September it was cut by about 7% to about 65%. Except for a few production lines, other panel manufacturers also adopted a conservative strategy in September, maintaining the same or even lower level in August.

Omdia said that the 8.5G, 8.6G line production capacity due to the recent decline in demand for IT panels, a significant reduction in the rate of production, shipments are also significantly reduced. In addition, the prices of 65-inch and 75-inch TV panels have fallen sharply recently, the production willingness of panel factories has declined, and the recent decline in the production rate is also very significant. The two 10.5 generation lines of BOE are expected to maintain only 60% of the crop movement from September to the fourth quarter, while Huaxing Optoelectronics’s two 10.5 generation lines also maintain about 65%, while the SIO Guangzhou 10.5 generation line is only about 40%.

Panel output will fall sharply from September to the end of the year, but demand is not currently in sight. If year-end peak season sales smoothly eliminate inventory, panel prices will quickly stop falling and rebound once downstream pulls back to replenish inventory.