Market Trend

According to latest statistics compiled by WitsView, MCI dropped 45.4 points from May 14 to June 14 from 3916.4 to 3871 points. The euro debt crisis seems to be intensifying as bank runs were seen in Greece on May 17 and Spain saw its 10-year debt yield climb in recent days, reaching the bail-out alert point of 7%. On May 24, the Eurozone debt announced that its May manufacturer PMI dropped to 45.9, a new low since June 2009. On June 6, the service sector PMI declined to the lowest point in seven months. In the U.S., jobless rates rose in May to 8.2% while the newly employed figures in the previous two months continued to be revised down, indicating that the recovery of U.S. job market is slowing down. The euro debt crisis threatens not only financial orders but also impacts on global economic momentum. The manufacturer PMI of May in China dropped to 50.4, meaning that the Asian giant is also entrenched in weak global economy. Therefore the Chinese government introduced a series of economic easing measures and subsidies of energy-saving products in attempt to stimulate steady growth of domestic consumption.

 

As the market enters its traditional low season, sales performance is facing the uncertainty triggered by the euro debt crisis. Inventory levels are increasing as confidence in demand is still weak. Despite the fact that the TFT-LCD industry is facing transitions of new products and new technologies and the supply chain structure is gradually under adjustment, resulting in a short-term balance in panel supply and demand as well as support in panel prices, the risk of over-supply might appear again if Eurozone problems get out of hand.