Entering April, the epidemic situation in China is severe, the Russian-Ukrainian war is in turmoil, and at the same time, the global inflation has a sustained and far-reaching impact on demand.
On the demand side, based on the continuous deterioration of the macro economy environment, the retail performance of the terminal market has weakened, and the panel stocking confidence from TV set makers has fallen into pessimism. The Chinese market was expected to usher in weak growth during the "618" promotional season originally, but with the COVID-19 outbreak in many places, it has caused a significant drop in logistics capacity and the hearted economy and market demand. In 2022, the TV demand in the Chinese market may continue to decline at a low level. The North American market is in a weak season for TV product sales, and due to high inflation has significantly suppressed TV demand, and retail performance is still bleak. The Russian-Ukrainian war is intensifying and inflation continues, the European market demand is still sluggish. Under pressure that raising interest rates from the United States and high inflation, the economy and demand of emerging countries may be difficult to expect to recover. Therefore, the panel procurement demand of brands continued to shrink, the second-tier market demand also subsided significantly, and the panel stocking demand was weak.
On the supply side, panel makers control the capacity still limited, and the overall supply level remains high. In April, the glass input of some panel makers was adjusted slightly. Mainland panel makers control capacity by slowing down the new lines' ramp up and adjusting input limited in parts of lines. Korean and Japanese panel makers lowered their production levels slightly under cost pressure, and the overall supply scale remains at a relatively high level. At the same time, the accumulated inventory from the second-tier makers formed a secondary supply for the market, which exacerbated the oversupply.
According to Sigmaintell's "supply and demand model"......
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