Why did Mobile phone lcds prices continue to rise for 4 months?

Why did LCD prices continue to rise for 4 months?
The key factor is the imbalance of supply and demand structure

Since May of this year, LCD prices have continued to rise. According to the research and analysis of “International Electronic Business”, the key factor is the imbalance of supply and demand structure.

1. The epidemic has stimulated the consumer side, and LCD TV panels have risen the most rapidly. After China resumed work production, demand in the traditional home appliance market increased and LCD production capacity was quickly digested. TVs alone consumed more than 80% of LCD production capacity. However, due to the suspension of most factories during the epidemic, LCD production capacity was limited, which resulted in insufficient LCD capacity in the face of market outbreaks The production capacity of the company eventually led to continuous shortages in the market and price increases.

2. The industrial development has been adjusted back, and planning has begun at the end of last year. In fact, the last round of LCD price increase cycle was from 2016 to 2017. Since 2018, the overall market price has continued to decline. Even in 2019, individual types have fallen below the cost of materials. The industry has generally experienced profit losses and returned to reasonable price range is what the industry expects.

3. Production capacity of Japanese and Korean companies exited and supply imbalance. The continuous decline in LCD market prices from 2018 to 2019 is due to the influx of a large number of local manufacturers, which doubled the global LCD panel production capacity in a few years, but there is no suitable application market to digest. In this context, the 2020 epidemic is superimposed As a result, the operating burden of LCD companies in Japan and South Korea has further increased, and it is difficult to make profits in LCD panel production, so they have to announce their withdrawal from the LCD panel business.

What is the trend of LCD supply in the mobile phone aftermarket?

At present, the domestic glass raw materials on the market are concentrated in the production of large-size LCD TVs and flat-panel screens. The shortage of raw materials such as glass ICs in the smart phone market is becoming more and more serious. This situation is expected to continue until the end of this year.

Also due to the epidemic, a large number of original glass was forced to stay in Hong Kong. It is said that Hong Kong will not clear customs until December at the earliest. If customs clearance goes smoothly, a lot of glass will be imported into mainland China, but because of the instability of the epidemic and the special geographical location of Hong Kong has delayed the customs clearance date many times, so it is still holding a wait-and-see attitude.

Now that the supply is getting tighter, the original and original quality LCDs of all brands will also face a shortage of glass in the next two months. It is expected that the prices of some products will soar from November.

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