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WitsView: Large-sized Panel Shipments Reached a Historical High in May due to Downstream Vendors’ Aggressive Restocking under Expectations of an Imbalance in Supply and Demand in 3Q10

15 June 2010 Display

According to the latest survey from WitsView, a research division of TrendForce, large-sized panel shipments grew 8.5% MoM to 55.8 million units in May 2010. Downstream vendors restocked aggressively in May due to the potential unbalance in panel supply and demand in 3Q10. Moreover, panel makers became more cautious in inventory control and capacity adjustment since there was no substantial decrease in panel demand in the slow season of 2Q10. Therefore, even though panel price began to drop in April, it only posted a moderate slide under the effective control over supply and demand ; and panel shipment, on the other hand, recorded a stable growth.
Shipments of four applications rose individually in May. Netbook (<12.1-inch) panel shipments increased by 17.7% MoM to 4 million units, driven by the drastic increase in shipment from Korean panel makers; notebook (>12.1-inch) panel shipments grew by 15.3% MoM to 16.4 million units; LCD monitor panel shipments increased by 5.3% MoM to 18.62 million units, while LCD TV panel shipments rose by 4% MoM to 16.78 million units.
Table : TFT-LCD Panel Shipment in May-10 (K units)
Witsview indicated that the manipulating strategies of aggressive restocking from downstream vendors will potentially increase their inventory. It will also affect demand for panels, and cause a different change in panel supply and demand in 3Q10. Furthermore, sales of IT products will enter its hot season in 3Q10, and brand vendors in China will be preparing for sales promotion for the National Day Holiday after their inventory adjustment for TVs is complete. It is expected that panel supply and demand will remain tight in 3Q10 if end-market demand remains strong and inventory is effectively cleared away. However, many uncertain elements still exist in 2H10 even though the market is optimistic toward the upcoming hot season. As a result, WitsView will be even more cautious in observing the upcoming market conditions.

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