Market Trend

Between August 17 and August 31, MCI Index tumbled 189 points from 5934.8 to 5745.8, a substantial decline in recent weeks. The index has fallen below the 20-day average and continued to slide; currently, the neckline is at 5700 points, making it difficult for the 60-day average to support the index. In addition, after the gradual recovery of glass substrate supply, panel output has gradually increased and the equilibrium of supply and demand has been restored. However, to prepare for the coming hot season, brand vendors continue to replenish their inventory in order to meet future market demand. As a result, there is a potential issue imbedded in the continued rise in inventory levels – if sales performance during the hot seasons turns out weaker than expected, the replenishment may halt, thereby impacting industry performance in the fourth quarter. The market is currently under observation; therefore the index is also affect by the uncertain sentiments, which will see corrections in the near term.