Market Trend

Based on the latest survey by WitsView, a research division of TrendForce, MCI index increased by 351.5 points to 6846.5 points between August 23 to September 6, 2010. Due the build-up of inventory, panel prices continued the downtrend. A WitsView’s survey indicated that prices of the top three applications dropped by 3%~7% which went below the cash cost. In the meantime, panel prices are expected to rebound shortly since panel makers started to adjust capacity since July and August, and further to lower the utilization rate in September. In addition, entering the traditional hot season, brand vendors aggressively prepared for the shipments for year-end price promotions, coupled by the new product launches at year end, it is expected to reverse the negative climate in 4Q10. The favorable information spurred a MCI index increase by more than 300 points. Nevertheless, whether the market condition will turn positive will have to depend on the sales performance in 2H10.