Market Trend

Based on the latest survey by WitsView, the research division of TrendForce, MCI index was down by 264.7 to 6714.1 points between July 12 and July 26. Driven by China’s panel procurement tour and EU’s loss on the dispute for violating the ITA, MCI index rose briefly. However, the overall market is still suffered from various negative industry-wide factors which are as follows: Firstly, since China’s consuming ability was overestimated by downstream vendors, the end-market demand was lower than expected; thus, their aggressive restocking led to the build-up of inventory from the beginning of the year. Moreover, panel prices started falling since April, but have yet hit the bottom. Accordingly, downstream vendors turned more conservative toward panel procurement, and thereby inventory closeout became their main target. Therefore, under the decline in both price and shipment volume, if the capacity could be adjusted effectively, the negative climate may gradually be improved.