Market Trend

Based on the latest survey by WitsView, a research division of TrendForce, MCI index slipped by 14.9 points to 6275.3 points from December 27, 2010 to January 10, 2011. Even though the decline was more modest compared to that of the past few weeks, some negative factors still had impact on MCI index, including the winter storm in the US and the continued depreciation of the euro. Accordingly, the Christmas sales in Europe and the US did not meet the expectation. In addition, downstream vendors have restocked aggressively for Chinese New Year holiday since 4Q10, so the momentum has gradually slowed down in January. However, the utilization rate among panel makers has not been revised downward, so the market concerns about the possible oversupply problem may further affect the panel price trend. Even with all the uncertain factors, downstream vendors’ aggressive restocking for new models stops the continued panel price falls. As a result, MCI index only dropped by 14 points amid the negative climate in the market.