Market Trend

Between July 6th, and July 18th, the MCI index rose by 213.6 points from 5674.5 to 5888.1. Since the 5~10% panel price increase in July, MCI has significantly risen by 400 points. According to WitsView’s survey, 2Q09 large-sized panel shipment posted outstanding figures, with QoQ growth of +42.3%, and YoY growth of +9.8%. In addition, all three applications’ inventories have returned to a healthy level, previously aggressive stock-up has gradually softened  by both system integrators and brands. As the later half of the year is the traditionally hot season for consumer electronics, the future outlook of the TFT LCD industry remains fairly optimistic.

In 3Q09, as the issue of upstream IC and glass substrate shortage resolves and capacity continues to ramp up, panel supply and demand will be back on track, according to WitsView. In addition, Korean panel makers were the first to witness a financial turnaround in Q2, whereas Taiwan panel makers are only expected to slip back into the black in Q3. Each of the main panel makers enjoys 9-15% revenue growth; and as panel supply stabilizes in future, it will underpin the Q3 revenue and profit. Based on WitsView’s forecasts, panel prices may continue to rise in late July, which will be conducive to the performance of MCI index.