LCD TV market seen strong even with US downturn

23 August 2007 14:16  [Source: ICIS news]

TORONTO (ICIS news)--Global demand for LCD (liquid crystal display) televisions will remain strong despite potential weakness in the US, analysts at HSBC said in a research note on Thursday.

 

LCD panels are an important end market for many specialty chemicals and industrial gases.

 

Global sales in the first-half of 2007 were above expectations and the London-based international bank was raising its 2007 demand forecasts, it said.

 

The US accounts for a third of global LCD TV demand and a 10% reduction in US demand could reduce global demand by about 2%, the bank said in its analysis.

 

Any slowdown in the US market in second-half of 2007 would have to be high to have a big negative impact, it added.

 

In the near-term, the analysts expect panel supply shortages to be a bigger issue than any demand-related concerns, they said.

 

Despite improving profitability, many panel companies were showing considerable restraint in capital expenditure, HSBC said.

 

Based on firm announcements, HSBC estimated that installed capacity on a panel area basis would grow 19% in 2008 while estimated demand would increase 29%, it said.

By: Stefan Baumgarten
+1 713 525 2653

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