In 4Q’11 the panel shipment is higher than actual demand such that the increase of inventory and rise of production capacity may suppress the price trend

After going through debt crisis in Europe and US and slow economic growth in China in 2011, the market of TFT-LCD industry has filled with the sentiment of “wait-and-see” with sliding procurement momentum. Panel makers have yet to get rid of the shadow of loss with imbalanced hot-season/off-season adjustment. In Q3 last year panel makers again tried to maintain market supply-demand stability through reduction of production utilization rates. In addition, upstream and downstream customers have started stocking for the promotion of Chinese Lunar New Year in advance such that panel prices were gradually stabilized in Q4 supported by increased demand for panels, and panel makers were encouraged to raise production utilization rates again.


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