The price for large-size panels has been increasing since May, but the pace of growth in June is slowing down. According to panel makers, the return to profits will have to wait until the third quarter, around July.

The main reason for the price hike for large-size panels in May is the low inventory level at distribution channels. In addition, panel makers who had reported large losses were determined to raise their quotes, which contributed to the price increase.

But the prices for most large-size panels including monitor, notebook, and LCD TV applications have now started flatting out. Only 26-, 31-, and 42-inch TV panels have shown a price increase of US$1.

The flat price is due to sluggish demand in Europe deterring system makers and vendors from placing orders. Also, demand for notebooks has been dwindling, especially in the European market. Notebook vendors have been reluctant in issuing procurement orders.

Despite the slow growth in June, panel makers believe the price will continue to increase into the third quarter.

Taiwan-based panel makers such as AU Optronics (AUO) and Chimei Innolux (CMI) have been operating with losses. Industry sources stated that the third quarter is likely to be the period for panel makers to report profits.