LCD Panel Prices Expected to Continue Rising in Q1

Source: NH Investment & Securities

[Asia Economy Reporter Changhwan Lee] It is forecasted that the LCD (liquid crystal display) panel prices, which surged last year, will continue to rise in the first quarter of this year.

On the 3rd, NH Investment & Securities predicted that LCD panel prices will increase in the first quarter, remain stable in the second quarter, and decline from the third quarter onward.

The price increase in the first quarter is due to a decrease in glass substrate supply caused by a power outage at a Japanese company. On the 10th of last month, a power outage occurred at the NEG (Nippon Electric Glass) factory in Takatsuki, Japan.

NEG is an LCD glass substrate company holding about 20% of the global market share. LCD glass substrates are one of the key components of LCD panels, which are widely manufactured by Korean display companies.

According to industry sources, NEG has a total of three glass furnaces in Takatsuki, and production was halted for four hours due to the power outage. Recovery is expected to take three to four months. As a result, it is anticipated that sourcing of glass substrates by domestic and international panel companies will not be smooth in the first quarter.

From the third quarter, supply is expected to exceed demand, leading to a decline in LCD panel prices. In particular, due to continuous facility expansions by Chinese panel companies and increased production, the LCD panel oversupply rate is estimated to be 3.2% in the third quarter and 3.4% in the fourth quarter.

Market share of Chinese companies is expected to continue rising. Gojungwoo, a researcher at NH Investment & Securities, stated, "Chinese LCD panel companies will continue to expand production capacity centered on 8th generation and above facilities with the goal of increasing market share."

This content was produced with the assistance of AI translation services.