32-inch panel prices have dropped by over US$4 in one fell swoop under the weak demand and climbing inventory levels of June, arriving at US$36. From a supply side point of view, we see BOE, a major supplier, trying to lower 32-inch production in order to alleviate the downward pressure on prices.

Meanwhile, Innolux’s 58-inch products from its Gen 5.5 line were no match for CEC Group’s low-pricing strategy, causing the company to suffer an outflux of orders and turn to 32 -inch products for help. We also see Korean manufacturers endlessly cranking out 65-inch panels, which are produced in pairs with 32-inch panels, in a bid to maintain their 65-inch panel market share.

32-inch panels will be in oversupply for July, and panel prices may crash below cash costs, putting panel manufacturers’ cost-saving abilities to the test.