Market Trend

According to the latest survey by WitsView, a research division of TrendForce, MCI index hiked by 171.8 points to 6299.8 points from November 15 to November 29, 2010. In the wake of weeks of tumble, MCI index finally rose by more than 100 points, which mainly attributed to the following: firstly, downstream vendors have begun the strategic inventory clearance since 3Q10, and the production cut started to take effect, which led the inventory gradually back to the healthy level. Hence, when downstream vendors face the upcoming Chinese New Year and the labor shortage, they start to restock panel inventory, which stimulates panel demand in 4Q10. Secondly, panel prices have gradually turned stable since 4Q10. Based on the 2HNov panel prices, NB panel prices remained the same while LCD monitor prices increased first. Although TV panel prices continued to slip, the decline is limited, which benefited panel makers’ stock prices. Finally, the provocative actions between North and South Korea on Yeonpyeong island may trigger the effect in order conversion among downstream vendors, which may affect MCI index. Yet, since the attack has not spread to the mainland, the follow-up needs to be observed cautiously.