WitsView: Large-size panel shipments declined by 4% in April; reflecting the strong wait-and-see sentiment in the market
According to WitsView’s latest survey, global large-sized panel shipments fell by 4% MoM to 51.44 million units in April 2010. This can be mainly attributed to the overinflated demand from high expectations of the hot season in 1Q10, which led to excessive product pull-in, and caused the gradual inventory build-up among brand vendors. Furthermore, panel prices began to fall in April, therefore, before the price turning point is confirmed, brand vendors will maintain a wait-and-see attitude toward demand. Hence, the conservative attitude accentuates the tension of slow season.
Of the four applications in April, TV panel shipments rose by 2.1% MoM to 16.14 million units, driven by strong shipment momentum from Taiwan makers. However, shipments of the other three applications recorded a MoM decline due to weakening demand. Of which, monitor panel shipments slid by 8% MoM to 17.68 million units; notebook (>12.1-inch) panel shipments fell by 5.4% MoM to 14.23 million units, while netbook (<12.1-inch”) panel shipments slipped 4.3% MoM to 3.4 million units.
Table : TFT-LCD Panel Shipment in Apr-10 (K units)
In line with WitsView’s conservative projection, the decline in both price and shipment volume in April triggered a drastic decrease in 2Q10 demand visibility. Additionally, it reflected that pressure from cell panel inventory and set inventory has not been completely lifted, and that downstream customers are waiting for prices to bottom out in May/June. However, according to WitsView, demand adjustments in the slow season will help restore the equilibrium of supply-demand in the industry supply chain, in order to prevent a “weak hot season” in 2H10.
