Market Trend

According to the latest survey by WitsView, a research division of TrendForce, the MCI index rose by 152.7 points to 5795.8 between March 21, 2011 to April 6, 2011. Since the disastrous earthquake that struck northeast Japan on March 11, 2011, it triggered market fears that the upstream component supply chain would be severely disrupted, thereby affecting the subsequent panel supply. This was a key factor behind the sluggish MCI index performance over the past few weeks. However, during the past two weeks, the MCI index saw a jump of more than 100 points, where it also crossed above the 20-day moving average. The jump was attributed to the following reasons. (1) For the time being, it appears the effect from the Japan earthquake on the panel supply will be minimal in the short term. Nevertheless, it remains to be seen how fast the upstream component makers can recover and resume full production. (2) In Mar11, the monthly shipments posted by the downstream clients and panel makers all experienced evident growth over Feb11. (3) In terms of the latest panel price trend, monitors are expected to see a small increase, while NBs will remain relatively flat. Meanwhile, the current panel declines at the TV panel segment should moderate significantly, thanks to preparations for the upcoming China Labor Day holidays in May11. These positive factors helped provide a boost to the current weak TFT-LCD market confidence.