Market Trend

According to the latest survey by WitsView, a research division of TrendForce, the MCI index slumped by 257.1 points to 5642.3 between March 7, 2011 and March 21, 2011. In light of the recent negative market developments, the MCI index was suppressed from making any upward increases, fluctuating between the monthly and quarterly average lines. The two most notable negative market factors included the following: (1) The disastrous earthquake that struck northeast Japan severely disrupted the upstream panel component supply chain. Although panel makers can hold out until the end of 2Q11, the tight manpower and resources that can be allocated to the recovery process has raised market concerns toward the future raw mater supply. (2) Beginning from Mar11 a temporary upturn has been observed in the panel market. However, this is mainly caused by the labor and raw material shortage that was created by the fewer working days back in Feb11. These developments have resulted in the LCD market confidence to be quite fragile at the moment.