TV panel prices are set to rebound in the third quarter as overall supply is expected to be getting tight in the quarter, according to industry sources.

Brand TV vendors are starting to replenish their inventories which have been reduced to lower levels recently duo to strong TV sales in the US in the second quarter and a surge of TV demand in other markets stirred up by the FIFA World Cup 2018 tournament, said the sources.

Demand for TV panels from the world's major TV brands is expected to increase 10.3% in terms of unit shipments and 12.8% in terms of area shipments sequentially in the third quarter, with those for 43-, 55- and 65-inch models showing strong demand growths, according to China-based marketing research firm Sigmaintell.

On the supply side, nearly all TV panel production lines at most flat panel makers will be operating at full capacities, pushing the global TV production capacity to grow 6.8% on quarter and 9.3% on year in the third quarter of 2018, said Sigmaintell, adding that major sources of increased capacity include BOE Technology's 10.5G line, CEC-Panda LCD Technology's two 8.6G lines, and AU Optronics' (AUO) 8.5G line.

By sizes of TV panels, quotes for 32-inch panels are likely to edge up 10% quarterly as overall demand is expected to be 1.6% higher than makers' supply capacity, Sigmaintell estimated.

Prices of 39.5-inch to 43-inch panels will also continue to move upward in the third quarter on tight supply that has been persistent since July. Quotes for 55-inch models, which have become steady in July, will go up slightly in August and September.

However, prices of 65-inch panels will see a steady trend in the thrid quarter as the supply and demand for such models will become more balanced.