LCD Panel Prices Forecast to Rise Due to Wuhan Coronavirus Outbreak

The LCD panel industry is one of the industries that would be hit by the spread of the Wuhan coronavirus. China accounts for about 50 percent of the world's LCD panel production.

Hubei Province, the epicenter of the epidemic, has decided to extend the Chinese New Year holidays to Feb. 13 to prevent the spread of the virus. As a result, Chinese LCD panel producers, including BOE, China Star and Tienma, have to delay the operation of their plants in Wuhan. The Chinese New Year holidays were scheduled to end on Jan. 30 but were extended by two weeks. Hubei's LCD panel production is expected to be halved in February.

Moreover, in light of the current spread of the virus, the possibility cannot be ruled out that the provincial government in Hubei will demand an additional delay in operating LCD factories. Wuhan accounts for only 1.3 percent of global LCD panel production, which means that delays in the operation of LCD factories in Wuhan will only have a limited impact on short-term LCD supply. However, there is a high possibility that other provincial governments may halt the operation of LCD plants to cope with the spread of the virus. As a result, LCD panel prices may rise, according to IHS Markit.