According to a report in WitsView, in May, panel prices trended as expected, although due to the uncertain market and demand in the TV segment, the panel prices were only up slightly.
Click to enlarge
The report notes that current IT panel demand and supply is in a relatively balanced state, while the TV segment is experiencing an oversupply.
The report notes that in general, although some of the accumulated inventory in China were cleared away which included both the TV panel and set, it will still take some time before the they can drop to a more balanced level.
Meanwhile the CEO of LG Display has indicated that with its main TV clients affected by the weak seasonality, it hopes to mitigate the impact by cooperating more closely with Samsung group in TV products, along with shifting some of the excess capacity to IT panels.
In addition, LG said it also plans to construct a second G6 line (60K/m designed), where mass production is slated for 2Q 2009. This will undoubtedly raise concerns regarding a possible oversupply situation in 2009.