Panel makers maintained high utilization rates for large-size TV panels in August 2013 while shipments only grew slightly. This has lead to high reserves and a decline in pricing for the panels as a result, which could last until the fourth quarter of 2013.
The makers are expected to take measures to clear out some of the reserves such as cutting prices through the end of the third quarter, but are likely to be stuck with excess inventory throughout the fourth quarter.
Such trends in the market have caused Japan-based panel makers' 32-inch open cell pricing to drop from US$100 to US$90 and prices are expected to remain around US$86-89.
The makers are still hopeful demand will pick up in China during the fourth quarter but are weary that oversupply in the market may continue as China-based panel makers continue to expand production.
Despite the high reserves, panel makers are reportedly still able to reduce costs by maintaining high yields and are able to make profits from the panels.
Meanwhile, the makers are also shifting some notebook panel production capacity to LCD monitor production as the notebook market has been stagnant.
