Market Trend

Based on the latest survey by WitsView, a research division of TrendForce, MCI index slipped by 40.7 points to 6263.5 points from October 4 to October 18, 2010. At current stage, the 20-day average rose above the 60-day average and sustained the MCI index to go upward, indicating that the market remained optimistic toward 4Q10. As we previously mentioned, the production cut started to take effect gradually. Although the inventory problem becomes softer, whether the market will robust has to depend on the sales performance at end market. According to WitsView’s survey in September, panel shipments grew by 3% to 53M units MoM, showing that downstream vendors aggressively prepared for the year-end hot season and stayed positive toward the sales performance in 4Q10; additionally, panel prices became stable in October. Thus, while both panel prices and volume gradually turn stable in the market, it will spur MCI index growth.