The panel quotations were released in late August. The power restriction in Sichuan reduced the production capacity of 8.5- and 8.6-generation fabs, supporting the price of 32-inch and 50-inch panels to stop falling. The price of 65-inch and 75-inch panels still fell by more than 10 US dollars in a single month.

Under the effect of the expansion of production cuts by panel factories, the decline of IT panels in August has converged. TrendForce pointed out that the downstream continues to adjust inventories and the momentum of pulling goods is still weak, and the trend of panel prices will remain unchanged, but the decline will converge month by month.

Sichuan began the power restriction from August 15th, and the power cut time was extended to 25th. BOE, Tianma, and Truly have 6th, 4.5th, and 5th generation lines in Sichuan respectively, which will affect the output of a-Si mobile phone panels. . In terms of large-size panels, BOE has a Gen 8.6 fab in Chengdu and HKC has a Gen 8.6 fab in Mianyang, producing TV and IT panels, of which 32-inch and 50-inch panels are more common. Fan Boyu, vice president of TrendForce Research, said that the power cuts in Sichuan forced BOE and HKC to expand production cuts. On the other hand, the prices of 32-inch and 50-inch panels had fallen below the cash cost, which also supported the prices. The price of 50-inch panel has stopped falling, and the price of 32-inch panel is about 27 US dollars.

However, at this stage, the panel inventory level is still high, and the terminal demand is still quite weak. The ten-day shutdown cannot reverse the oversupply of panels. It will be observed how long the power cut will last. In terms of other sizes, the prices of 43-inch and 55-inch TV panels have also reached the bottom, falling by about $3 in August, to about $51 and $84, respectively. Inventories of 65-inch and 75-inch panels remain high, with a monthly drop of as much as $10 to $14, and the quotation for 65-inch panels is about $110.

Since the beginning of this year, the cumulative decline of IT panels has exceeded 40%, and many sizes are close to the cash cost. The price decline has converged in August. In terms of monitor panels, 18.5-inch, 19-inch and other small-sized TN panels fell to US$1, while 23.8-inch and 27-inch panels fell by about 3 to 4 US dollars.

Under the effect of production cuts, the decline of notebook panels in August also narrowed significantly. Among them, 11.6-inch panels fell slightly by US$0.1, and HD TN panels of other sizes fell by about US$1.3-1.4. The previous decline of Full HD IPS panels also converged. to $2.50.

Although panel prices fell below cash costs and panel makers expanded production cuts, panel prices have yet to see signs of stopping the decline. Fan Boyu said that the inventory level in the supply chain is high, and brand factories continue to destock. With demand not picking up, although panel prices are close to the bottom, there is no momentum for price reversal upwards in the fourth quarter.