The number of confirmed cases has increased recently, and some panel factories encourage employees to take vacations at home, and the capacity utilization rate in December will be revised downward. Xie Qinyi, research director of Omdia Display, said that the capacity utilization rate of panel factories was at a low level in December. The Lunar New Year holiday will be longer in January next year, and the number of working days will be fewer in February.
 
While the diagnosis rate soared, factory production was also affected. It is rumored that the first-tier mainland panel factories have recently encouraged their employees to take vacations and rest at home to avoid further escalation of the factory epidemic. The epidemic also caused a reduction in the production of panel factories, and the capacity utilization rate dropped again in December.
 
Xie Qinyi said that with the decline in TV panel inventory and the demand for early-order purchases before the Lunar New Year has picked up in October and November, the production volume of panel factories has also increased slightly, and the average capacity utilization rate of global panel factories has risen to 7. become. Now due to the spread of the epidemic, the capacity utilization rate of mainland panel makers has dropped again. On the other hand, panel makers have seen that strict control of capacity utilization rate can effectively stop the price of panels from falling or even rise slightly, so they are still quite cautious about the regulation of production volume . Now the panel factory is "production to order", that is, to select orders with reasonable prices to produce, so as to avoid further loosening and falling panel prices.
 
On the other hand, the downstream brand manufacturers were more cautious in purchasing goods because they were raised by panel manufacturers after placing urgent orders. Xie Qinyi said that brand manufacturers adopt a "Buy to price" strategy. In order to avoid the price increase of the order, they are willing to place an order only when they step on the price. Therefore, it is expected that panel prices may be in a "terrorist balance" in December, and even in January and February next year. "period", that is, the price cannot rise or fall.
 
Xie Qinyi said that another variable in the market is LGD. LGD announced that it will terminate the production of LCD panels in South Korea. Even the 8.5-generation plant in Guangzhou will stop producing LCD TV panels and switch to producing IT panels. This is equivalent to the complete withdrawal of Korean panel manufacturers. In the LCD TV panel market, it is calculated that the output of TV panels will decrease by about 20 million pieces next year. If LGD withdraws from LCD TV panels early, brand manufacturers will have to stock up as soon as possible, but if LGD just talks and fights, the L-shaped trend of panel supply and demand may continue for a long time.