WitsView:When price fell below the bottom line of cash cost, it is an indication of limited room for further price decline
According to the latest research statistics of WitsView, MCI has risen by 133.8 points from 3752.1 to 3885.9 during the time period of 9/12~10/11. There has been some light at the end of tunnel for debt crisis in Greece with countries in Euro region planning for the project of expansion of European financial stability fund. However, before issues of high unemployment rate and inflation are solved, the overall European and US market are still caught in slow economic recovery and filled with uncertainty. In the market of China, which has been the focus of global export market, has been filled with uncertainty this year due to the tumbling stock market, cooled down real estate market, financing difficulties among SMEs, and rising debts among local governments.
2011 has been the year of over-supply for LCD industry, where panel makers have been more careful than usual with production capacity modification. Weak global economy has severely impacted panel demand leading to uncertainty in the coming hot sales season of Q4. The price decline of LCD TV panel in Q3 has been over 10% resulting in significant financial burden among panel makers. However, there could be a chance for a more balanced supply-demand state in the market and more stabilized price trend due to increased scale of production reduction among panel makers in Q3, and stock preparation for Chinese Lunar New Year which is going to take place in advance in Q4.
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