According to statistics by market research institute DisplaySearch, announced in the 3Q of 2006, worldwide TFT-LCD glass substrate deliveries increased by 14% in the 3Q of 2006, thanks to the reboundi…
According to statistics by market research institute DisplaySearch, announced in the 3Q of 2006, worldwide TFT-LCD glass substrate deliveries increased by 14% in the 3Q of 2006, thanks to the rebounding demand for displays. During the same period, average monthly deliveries reached 9.8 million sq.m., sales grew by 12%, and quarterly sales hit JPY 99 billion. DisplaySearch predicted that the glass substrate market would sustain the supply and demand balance in 2007, and the prices would not go unduly down. DisplaySearch announced that during the same period, worldwide glass substrate production amounted to 30.716 million sq.m., up 7% from the 2Q. As panels makers cut production due to over-productivity concern, glass substrate suppliers made their expansion more restrained. Worldwide glass substrate production is expected to increase by single digits in the near future. Corning Inc., including Samsung Corning Precision Glass (SCP), took almost 60% of the market, gaining first place. Asahi Glass, second, gained 18.5%, followed by Nippon Electric Glass (NEG) with 15.2%. Glass substrate prices continued to decrease by 3 to 5%. DisplaySearch said it expects a supply-demand balance for the world“s glass substrate market in 2007, so a price fall of less than 5% would be inevitable. In the 3Q of 2006, the price of 5G glass substrate slid by 1 to 3% and prices of 5.5G and 6G glass substrate declined by 5% to between JPY 19,000 and 20,000. 7G glass substrate price decreased by 3% to about JPY 40,000. The price gap between 7G and 7.5G glass substrates is expected to gradually narrow. 8G glass substrate price reported the steepest decline, after it fell 11% in the 3Q. It was expected to decrease further by 14% in the 4Q of 2006. Worldwide monthly glass substrate deliveries amounted to an average of 9.8 million sq.m. in the 3Q of 2006, an increase of about 14% from the 2Q. Monthly deliveries from Corning amounted to 2.9 million sq.m., Samsung Corning Precision 2.8 million, and Asahi Glass“ monthly deliveries reached 1.5 million sq.m.. With concern over the light season ahead, production has started to be cut, which is expected to decrease worldwide glass substrate throughput in the 1H of 2007. Besides, DisplaySearch predicted that supply and demand for glass substrate would remain in balance, so the over-supply ratio, rising to the high-level of 9.9% in the 2Q of 2006, should remain below 5% in 2007.