Market Trend

According to the latest WitsView research statistics, MCI index rose from 3987.1 to 4115.4 by 128.3 points during the period of 12/13~1/13. With coming year-end Christmas Holidays and New Year Holidays of 2012, the debt crisis in Europe and US seems to be put to rest temporarily based on the efforts of governments of all countries. However, it remains to be seen whether or not the global economy can break out of the slump in 2012.

Panel makers have begun production reductions starting from Q3 last year for digesting excessive market inventory. In December downstream customers began stock preparation for 2012 Chinese Lunar New Year in advance, and the increased demands have not only supported the stability of panel price, but also simulated panel makers to raise production utilization rates again.

Along with stabilized panel price, increased demand before Lunar New Year, raised production utilization rates, reduced cost and strong demand for products of new sizes, the market has expected panel makers to deliver significantly better financial reports in Q4 last year than in Q3. It has not been ruled out that Korean panel makers have a chance to turn loss into profit in Q1 this year.