Market Trend

According to the latest survey by WitsView, a research division of TrendForce, MCI index slipped by 38.7 points to 6208 points from October 29 to November 15, 2010. Firstly, in the past two weeks, major panel makers issued 3Q10 financial reports one after another, and the revenue dropped by 5~10% QoQ. CMI even reported an operating loss, which indicated that panel makers’ financial pressure soared while panel prices fell below the cash cost. Secondly, after panel makers reduced the input capacity, the inventory level among downstream vendors went down, or even returned to the healthy level. Thus, since panel makers’ financial pressure increased, and inventory problem gradually stabilized, panel prices were on the rise. Based on a WitsView’s survey on 1HNov panel prices, mainstream monitor panels rose by $1-2. The demand is expected to be driven while the market expects panel prices to approach the bottom, along with the 4Q10 traditional hot season. Nevertheless, the market’s insufficient confidence toward the year-end hot season led to the moderate decline in MCI index.