A marginal rise in LCD prices is likely in June as companies rebuild their inventories to serve as insurance against supply disruptions related to the Japan disaster, according to market research by IHS iSuppli.
This is despite very weak markets for TVs and PCs, big LCD panel users, in the US and Europe.
“For each of the three main applications of large-sized LCD panels—i.e., televisions, monitors and notebook computers—pricing in June is projected to rise by an average of 0.2%,” said IHS iSuppli.
This is the first time all three applications have experienced an increase since April 2010.
“Consumer demand for the major products using LCD panels, like televisions and computers, remains weak, especially in the US and Europe,” said Sweta Dash, senior director for liquid crystal displays at IHS.
“Despite this alarming sales situation, pricing is on the rise for all of the major LCD applications with panel buyers replenishing their stockpiles in order to build buffer inventory,” said Dash.
For June, all three applications for large-sized LCD panels are expected to post slight increases, rising 0.1% for desktop PC monitors, 0.2% for televisions and 0.5% for notebooks.
The market research firm believes buyers are still purchasing panels to mitigate the risk of any shortages of components used to make LCD panels following the Japan quake disaster in March.
Japan is a major source of production of components for use in LCD panel manufacturing.
