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>> IHS analysis of the 2016 LCD market oversupply 1st,Mar,2017
Global TV demand is declining, LCD LCD screen oversupply, and will continue until 2016, according to IHS analysis, is expected in 2016 large-size LCD LCD screen demand will be greater than 14%, higher than 2015 12%.
China's LCD suppliers to maintain a high production goals and expand production capacity reasons, on the one hand is due to the Chinese government subsidies infrastructure construction, on the other hand is due to, LCD TV demand is mainly distributed in Russia, Brazil and some other emerging countries. But these countries did not grow as expected, due to the devaluation of the currency and the slow economic recovery.
In the fourth quarter of 2015, panel prices fell sharply, due to the devaluation of emerging countries, 2016 on the higher prices of LCD TV demand will not rebound. Even so, Chinese panel makers do not intend to reduce capacity utilization, expand market share in the short term, which means that large-size LCD LCD screen manufacturers will fire in 2016.
China's LCD suppliers are expected to adjust capacity utilization in mid-2016, LCD oversupply will ease in the second half of 2017. "If the 2016 Chinese manufacturer does not reduce capacity utilization, it will have a huge negative impact on the profit margins of global LCD suppliers," said Tamura, director of IHS Display.
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