Q2 TV Imports to US Fell 16.2% From 2021 Quarter, Says DataWeb

U.S. importers sourced 9.07 million TVs from all countries in all screen sizes in the second quarter, 7.2% fewer sets than in Q1 and 16.2% fewer than in the 2021 quarter, according to Census data accessed through the International Trade Commission’s DataWeb tool.

Companies that feed the global TV supply chain, including Corning for TV glass (see 2207260037) and Himax Technologies for display-driver chips (see 2208110037), spoke on their recent earnings calls of sudden and drastic demand cutbacks in June from their LCD TV panel customers as TV brands dramatically reduced their procurement plans amid inflationary pressures, the war in Ukraine and plummeting consumer confidence. DataWeb shows TV imports to the U.S. declined 8% from May to June.

Those goods entered the supply chain before panel makers, facing a severe LCD inventory glut, slashed their capacity utilization to their lowest levels since the financial crisis of early 2009, according to Corning. More significant declines reflecting the sharp cutback in utilization inevitably will show up in the import results for Q3 when they're released in early November. Display Supply Chain Consultants (DSCC) reported this month it expects the LCD oversupply to persist through 2023 (see 2208080053).

The average second-quarter TV import to the U.S. had $302.06 in customs value, said DataWeb, 8.6% lower than in Q1 and down 5.4% from the 2021 quarter. Experts we polled suggested the declines would have been steeper if not for inflationary trends in the global supply chain, especially higher costs for logistics, transportation and components.

DSCC also reported recently that the “perfect storm” of an oversupply, near-universally weak demand and excessive inventory throughout the supply chain is keeping LCD TV panel prices at record lows in “every screen size” (see 2208010044). Q2 TV imports in screen sizes between 35 and 45 inches had the steepest year-over-year declines in average customs values, said DataWeb. Imports of sets between 30 and 35 inches had the sharpest sequential average-value declines compared with Q1.

U.S. importers in Q2 sourced 5.21 million TVs from Mexico, the largest country of origin for TV imports, and also the country with the steepest year-over-year decline in shipments to the U.S., said DataWeb. Mexico shipped 21.9% fewer sets here than in the 2021 quarter. Shipments from Mexico were down 11.2% sequentially from Q1. Mexico in Q2 continued its long string of supplying the U.S. with the world’s most expensive sets. The average Mexican TV import was worth $416.66, down 3.9% from Q1, but up 2.9% from 2021's second quarter.

China shipped 1.85 million TVs to the U.S. in Q2, said DataWeb. Though that volume was down 2.6% year over year, it was 20.9% higher sequentially from Q1, and likely the result of catch-up demand after COVID-19 lockdowns in China were lifted beginning in late April. Chinese products had the steepest year-over-year decline in average customs value of all countries shipping TVs to the U.S. in the second quarter. Its average value of $141.19 was 21.9% lower than in Q2 a year earlier and was down 7.9% from Q1.

Q2 Vietnamese TV imports to the U.S. declined 7.3% quarter over quarter to 1.15 million sets, but shipments were up 6.5% from a year earlier, said DataWeb. The average Vietnamese import was worth $154.63 in Q2, down 11.2% from Q1, but up 1% year over year.

TV imports to the U.S. with screen sizes exceeding 45 inches (subheading 8528.72.64.60 in the Harmonized Tariff Schedule) reached 4.75 million sets in the second quarter, said DataWeb, 9.9% lower than in Q1, and 22.1% lower than in Q2 2021. The average set in that screen classification was worth $453.80, down 5.3% from Q1, and up 3.5% year over year.

U.S. importers in Q2 sourced 1.88 million TVs between 35 and 45 inches (HTS 8528.72.64.40) from all countries, said DataWeb. Shipments were down 17.5% from Q1 and 30.6% from a year earlier -- the steepest sequential and year-over-year unit declines of any screen classification. The average value of $179.02 was down 6.8% quarter on quarter, and down 11.5% year over year.

Second-quarter imports to the U.S. of TVs with screen sizes between 30 and 35 inches (HTS 8528.72.64.30) declined 3.7% from Q1 to 1.58 million sets and were down 4.2% from the 2021 quarter, said DataWeb. Their average value of $113.31 was 4.5% lower than in Q2 a year earlier, and was down 9.8% from Q1 -- the biggest sequential decline of any screen classification.