Global market into the second half of 2016, flat panel display of supply and demand situation is increasingly tightens, I'm afraid the panel market in short supply situation will worsen in 2017...

Market research firm IHS Markit observation points out that due to the new production capacity from Chinese manufacturers, seasonal and market demand is weak, in the first quarter of 2016 the global flat-panel display (FPD) supply over demand by 20%, this is the most dramatically since early 2012 the excess supply of; Although the market rapidly in the second quarter to self-regulation, surprisingly, into the second half of 2016, the supply and demand situation is increasingly tightens, I'm afraid FPD panel market in short supply situation will worsen in 2017.

IHS Markit, points out that in late 2015 and early 2016, the panel prices falling fast prompt consumers to buy a large screen television; In the meantime, laptops and display demand starts to stabilise. Finally, because the manufacturers in some factories to enable new process is more complex, and most importantly, shut down a number of inefficient production line, this leads to a limited capacity to grow.

IHS Markit senior director Charles Annis, said: "South Korea panel makers in closing the old LCD production lines (including Gen 5 even Gen 7 factories) especially. At the end of this year is expected to logoff Gen 7 factories of South Korea, the large size panel production accounted for nearly 4%. This will be the FPD manufacturing factories shut down in the history of the largest panel."

According to the latest report IHS Markit, large-screen FPD application requirements in is expected to grow 5% a year between 2016 and 2018 ~ 6%; However, large size panel production capacity will only increase by 1% in 2017, is expected to expand 5% in 2018. By the second half of 2018, as China will have more capacity, including the world's first Gen 10.5 factory, the market is expected to be again a loosening.

Annis, said: "in the past, the market has been through the FPD reduce plant utilization and delay capacity expansion plan to implement the self-adjusting, with China's rise in FPD manufacturing, these strategies in 2016 looks unlikely. This situation forces in other parts of the manufacturer with unprecedented accident rate for its current production facility rationalization way."