Market Trend

 According to the updated research statistics by WitsView, MCI fell by 53.9 points to 3817.1 points from 3871 points during 6/14 ~ 7/17. MCI hit its 60-day moving average and fell below 20-day moving average line afterwards due to insufficient momentum, displaying a conservative attitude toward the market outlook for 3Q12. As European debt crisis has spread and affected the global economy, coupled with BRICs’ lowered-than-expected performance, central banks in the US and other countries slashed their interest rates to stimulate the market demand while the global economic growth slows. Thanks to panel makers’ effective capacity control in 1H12 and their switch to new products and technologies, panel sufficiency therefore remained balanced temporarily amid fragile overall economy and slow terminal demand. Based on WitsView’s Large-sized Panel Shipment Report, panel shipments in Jun-12 declined by 1.9% MoM, indicating a slower market demand in the offseason. The figure also suggests that panel makers will need to keep the panel price steady with their continuous effort in capacity control. 

Due to the concerns over the close of mid-year financial statement and consecutive macroeconomic slowdown, the overall supply chains have been cautious about inventory control. The panel makers will be likely to improve their profitability and turn losses into profits on condition that panel price in 3Q12 can stay steady.