A slowdown in Chinese demand and unstable economic conditions in Europe have led to a fall in prices for liquid crystal displays (LCDs) over the last few months, according to DisplaySearch (Austin, Texas / USA; www.displaysearch.com). Prices for plasma display panels (PDPs), on the other hand, have been more resilient. In the last years screens of this kind have increasingly been driving PMMA demand.

LCD pricing was fairly strong until the middle of the second quarter but prices started to decline in June, the market research group says. Huge LCD inventories have also contributed to the price declines. Prices for PDPs, which are cheaper to produce in large sizes than LCDs, were stable in August. Yoonsung Chung, director for flat panel display material and technology analysis at DisplaySearch, says PDP manufacturers, especially in South Korea, are preparing for historical shipments in the second half of the year. While LCD makers started lowering their production rates at the end of June in a bid to reduce inventories, PDP makers are still enjoying full capacities, he adds.

Earlier this year, LCD makers said they would focus on LED panels, and insisted that LED panel shipments would increase rapidly, notes Chung. Consumers had the impression that the newer LED technology would have higher prices initially, and may have concluded that it would be better to wait for LED LCD TVs to become more affordable, he suggests. “However, the shortages for LED BLU (backlight unit)-related components did not allow for more affordable prices.”

PDP makers are also expected to benefit from the emerging 3D TV market. 3D TVs usually come in big size screens where PDPs have the price advantage and boast wider viewing angles and quicker response times. Many first-tier TV brands are launching 3D LED LCD TVs but the prices are still too high for most customers, pushing consumers to buy PDP TVs instead, says Chung.