Taipei, July 2, 2009 (CENS)--Although pricing for LCD panels used in TV now is rising due to an acute shortage of glass, the shortfall is expected to be resolved in time for the all-important holiday buying season, allowing LCD-TV brands to offer customary Black Friday deals, according to iSuppli Corp.

Amid extreme oversupply in the fourth quarter of 2008, suppliers of glass for the kinds of large-sized LCD panels used in TV started cutting capacity to less than 50% of full utilization at the end of 2008. Some glass makers even shut down some of their glass-producing lines.

Because of this, according to Sweta Dash, senior director of LCD research for iSuppli, panel suppliers now are unable to increase their LCD panel production capacity despite strong TV demand from mainland China and other regions. Global prices for large-sized LCD panels are expected to rise for a fifth consecutive month in June.

However, iSuppli said, this situation is not expected to last, with prices for nearly all sizes of LCD-TV panels peaking in September and commencing a decline that would persist through the remainder of 2009 and into 2010. This would help pave the way for the customary round of price reductions and Black Friday deals that historically have driven LCD-TV sales during the holiday selling season, the research firm said.

In the meantime, the LCD panel market will continue to struggle with the glass shortage issue. Unlike some raw materials, whose production can be ramped up quickly to meet changes in the level of demand, it takes time for glass makers to restore manufacturing to previous levels.

Depending on the level of deactivation of a glass furnace, it may take from one to six months to restore it to full production, iSuppli said. Because of this, the research firm expects the glass shortage won`t be resolved until September, by which time panel suppliers will be able to increase capacity and expand supply.


(by Quincy Liang)