It is understood that large-size LCD panel prices in August for “down” situation, the price of notebook computer panels down the chain around 6%, Display panel prices fell for the chain less than 10% . TV with the panel, the 37-inch size of the following chain fell 5%. 40 inches or size of, CCFL backlight panel chain fell 2-3%, led backlight panel chain fell 1-5%, following July’s decline has continued to show a larger change.

From the second quarter of 2010, prices began to decline after the TV panel prices with the overall decline in the range of 7-10%, IT (notebook computers and monitors) use panel prices fell by more than 15%. Therefore, a price drop in July, the panel makers have adopted to adjust the supply of panels starts to compress and form a relatively tight supply situation, thus inhibiting the price down. The supply capacity, the capacity utilization in August less than 80% of the panel makers mainly centered on Taiwanese manufacturers, other manufacturers are also part of the production line shutdown time limit.

This situation caused the price decline in a cause which itself has a brand of Korean panel makers machine actively maintain high operating rates, cheap offensive was launched to accelerate the price decline.

However, it failed to raise demand for the current panel, but not only inhibits the panel output expanding at a rate, Jin Ru Huan Daozhichangshang after September to reduce the operating rate of the Fang Zhen Cai Yong.

In accordance with usual practice, it is now facing the back to school (mainly North America, demand for the new semester) and at the end of the needs of business of war, while the demand for the 2010 panel is not only no hot situation, but continuing price declines. The major reason is the prerequisite for economic recovery machine manufacturers supply plan developed strong deviation from reality. At present, the “panel makers – machine manufacturers – vendors,” the supply chain exists the problem of excess inventory, so manufacturers and distributors Bianba machine cut panel and the machine’s inventory levels on a priority. Therefore, the demand for the end of the machine, did not demand new panel. As the industry’s inventory levels to achieve the appropriate level also need to spend a few weeks time, October is the peak demand panel, after the recession is that demand, it is estimated that the final panel will not appear before the end of the year demand for hot Panel situation.

As for the actual needs of the key machine, the current pace of economic recovery are still rather slow, are still continuing with the demand can not be called a full recovery situation. Major machine manufacturers to launch a panel to activate the market makers to provide market development funds (MDF: MarketDevELopmentFund) response, in order to lower machine prices, wake-up demand, but for now is still very limited effect.

The current price volatility in our forecast blueprint, along the fastest mode goes down. Part of the IT use panel prices have dropped to near the level of cash costs.

As for future price forecasts, if the level of excess inventory panel and the machine is adjusted, for the new panel in 2011 and by the end of 2009 as inventories showed a clear trend, then the estimated time of rising panel prices are expected to switch to come early. Period is expected in January 2011 ~ February around.

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