Price cuts to attract large panel buyers, overcapacity looming
As BOE's Gen 10.5 Hefei line reaches full swing, and CSOT's Gen 11 continues expanding, 65-inch and 75-inch panel supply will far surpass the needs of customers, leading to only one road for 65-inch and 75-inch panel prices: reduction. Panel manufacturers have even accumulated over a month's worth of inventories in June, and are under heavy pressure to sell off their stocks: 65-inch products have slid by US$10, with ASP reaching US185. As for 75-inch products, CSOT had to drive prices down to appeal to customers in order to keep the flow of shipments steady after its Gen 11 line began mass production in May, causing the 75-inch market to drop by 7-9% and ASP to crash below the US $400 threshold in June. Now as CSOT has new production capacity for large-sized panels, perhaps not even BOE's attempt to relocate capacity from 65- and 75-inch products to 43-inch products would be enough to mitigate the risk of prices falling.
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