Domestic TFT-LCD LCD panel prices rebounded

At present, the price of LCD panels has rebounded. After six months of continuous decline, the price of LCD panels began to stop and rebound at the end of July. According to Displaysearch, the international market research company, LCD panel prices around the world have stopped falling and rebounded since August. In August, the price of 17-inch LCD panels rose 6.6% from $105 in July to $112. The price of the same type of LCD panels fell from $140 in March to $105 in July. At the same time, the price of 15-inch and 19-inch LCD panels has also risen by different margins. According to WitsView's offer in early August, the price of 17-inch LCD panels rose from $104 in late July to $110, an increase of 5.8%. Analysts believe that this price rebound will continue throughout the third quarter, which will see seasonal growth due to factors such as back-to-school sales in the United States and the completion of inventory digestion in the first half of the year. It is understood that Dell and Hewlett-Packard computer manufacturers began to issue display orders in the third quarter. Display manufacturers Samsung Electronics and Guanjie will increase their production in the third quarter, with the expected growth rates of 25% and 18% respectively.

It seems that the increased demand in the market has led to the release of the production capacity of the display panel production line. According to the domestic TFT-LCD panel manufacturer Beijing Dongfang and Shanghai Radio and Television, the production schedule of the two companies has been scheduled for September. The production capacity may reach the full production target by the end of the year. Beijing Dongfang will produce 85,000 glass substrates per month (its design capacity is 90,000). Prior to that, panel manufacturers had been stuck by falling prices, with Beijing Oriental, Shanghai Radio and Television and even international panel giant LG Philips losing money. According to industry analysts, if the price rebound can continue into the fourth quarter, panel manufacturers such as Beijing Oriental, Shanghai Radio and Television will use the price rebound to reverse the decline.

It is understood that Beijing Oriental's first quarter financial report shows that the company's main business income is 2.404 billion yuan, with a loss of 490 million yuan. Beijing Oriental attributed the loss to a drop in the price of 17-inch display TFT-LCD products produced by Beijing TFT-LCD fifth generation production line, a subsidiary of Beijing Oriental Photoelectric Technology Co., Ltd. Beijing Oriental has issued a first half loss announcement in April. In the first quarter of 2006, affected by the off-season operation of TFT-LCD business, the company has suffered a large operating loss, and the TFT-LCD market price downturn continues to this day. Therefore, it is expected that there will still be operating loss in the first half of 2006. In July, LG Philips, the world's largest LCD producer, reported a loss of 322 billion won ($340 million) in the second quarter of this year and a profit of 41.1 billion won in the same period last year. LG Philips attributed the loss to intense price competition and market demand that did not meet expectations.