Quotations for the three major applications of panels were flat in October amid rising costs and weakening demand.

In October, the quotations of the three major panel applications were flat.

The latest panel quotation survey by market research agency TrendForce pointed out that in the fourth quarter, the costs of upstream panel components have increased across the board, and panel factory cost pressures have continued to rise. However, on the other hand, demand for TVs, monitors and NB panels has weakened, and buyers and sellers have been tugging at each other on price. It is expected that panel quotations for the three major applications will remain flat across the board in October.

Fan Boyu, vice president of research at TrendForce, said that panel manufacturers have clearly felt the pressure of sharply rising costs of upstream components in the fourth quarter, which may even further erode TV panel profits. Among the three major applications of panel manufacturers, only TV panels still maintain stable profits. If the profits of TV panels are compressed, it will impact the overall profits of panel manufacturers. Therefore, panel manufacturers have recently actively requested price increases, hoping to reflect rising costs.

However, the demand for TV panels in the fourth quarter may be slightly weaker than that in the third quarter. It is not even ruled out that TV brand customers may re-adjust their purchasing volume in the fourth quarter in response to panel manufacturers' price increase strategies. Fan Boyu pointed out that buyers and sellers are still testing each other's acceptance and bottom line of price increases. With demand relatively weak in the fourth quarter, TV panel prices are expected to remain flat across the board in October.

In terms of display panels, demand in the fourth quarter is expected to decrease by 8% quarter-on-quarter, a larger decrease than in the third quarter, indicating that market demand is still weak. However, with component costs rising sharply, panel manufacturers do not have much room to reduce prices. Brand customers also understand the cost pressure on panel manufacturers, so both parties have a certain consensus on keeping prices the same. If the subsequent TV panel price increase is successful, it may also lead to a follow-up increase in monitor panel prices; currently, monitor panel prices in October are also expected to remain flat across the board.

The demand for NB panels is even weaker. The purchasing demand of the top six major brand customers in the fourth quarter is expected to drop by more than 20% quarter-on-quarter, and panel factory shipment pressure has increased significantly. However, with the cost of upstream components rising across the board, panel manufacturers lack the room to win orders through price cuts. In addition, brand customers need to control inventory at the end of the year, so there is limited room to reallocate orders. Both parties have reached a consensus on maintaining price stability. Therefore, the October NB panel price forecast remains unchanged.