Market Trend

Between May 31^st and June 14^th, MCI index slid by 176.7 points to 6900.5 points. The decline was more moderate compared to previous weeks due to the following: firstly, panel prices have been decreasing since 2Q10. Nevertheless, it will potentially rebound in 2H10 because of its limited nature of decline. Secondly, starting from May/June, downstream vendors adjusted their inventory strategically. Therefore, large-sized panel shipment still reached a record high in May in spite of their increasing inventory influenced by the European debt crisis. It reflected that the market was less negative toward the traditional hot season. However, from a technical perspective, the index is still at a critical cross-over with 20-day average and 60-day average, which constrained its uptrend; therefore, market will have to be more cautious in observing the development of inventory level and the European debt crisis.