Market Trend

According to WitsView’s latest survey, MCI index dropped by 81.2 to 6886.6 points between July 26 and August 9. MCI index continued to decrease for the past two weeks under the environmental impact assessment of Central Taiwan Science Park and high inventory level. In fact, it was forecast that 3Q10 panel supply would be tight, so panel shipment increased greatly to meet downstream vendors’ aggressive restocking since the beginning of the year. However, the sales performance was worse than expected in Europe and China end market. As a result, panel and set inventory level among downstream vendors continued to rise, affecting their product pull-in in early 3Q10. WitsView further pointed out that panel shipment was down by 8% to 50.9 million units while panel price decline of three main applications reached 2~6% in 1HAug. Thus, panel makers’ revenue dropped in July due to the decline in both panel price and shipment volume. Whether the market will remain optimistic has to depend on end-market sales condition in 2H10.