Market Trend

According to the latest survey by WitsView, a research division of TrendForce, MCI index dropped by 292 points to 6594.6 points between August 9 and August 23. Because of the weak demand and inventory pile-up, MCI index was at a critical cross-over with 20-day average and 60-day average. The industry has entered its traditional peak season. However, due to the weak end-market demand, as well as the build-up of inventory, downstream customers reduced their panel procurement from panel makers. While the downstream panel demand was reduced, panel prices may continue spiral downward. WitsView further indicated that price fell by 2%~6% of three applications in 2HAug compared to that in 1HAug. The price fall was higher than expected which impacted the market confidence tremendously. Therefore, under the decline in both price and shipment volume, Taiwan panel makers could merely adjust capacity in response to the weak market condition. Consequently, the climate turned negative in market, and whether the economy will reverse has to depend on the end-market sales performance in 2H10.