Market Trend

According to WitsView’s latest statistics, MCI index increased 55.7 points from 4143.6 points to 4199.3 points during the period of September 14 to October 18. MCI bounced back right after diving below the monthly average line. Market confidence was once hurt as Spain was expected to request for bailout after Greece. On the other hand, the US and China were supported by stimulus policies, seeing improving economic indicators, including the US’s PMI surprisingly climbing to 50 and China’s PMI rebounding for the first time after declining for four consecutive quarters, showing evidences to recovering economy. Based on WitsView’s global large-sized panel shipment report in September, the shipment increased 1.3% MoM, among these, the LCD TV panel benefited from the energy-saving subsidy policy launched in China and reached a historical new high of shipment.  

Although the end market demand is unclear, the panel market would shows stable trend in prices and sales volumes in the short term as it is sustained by the stimulus economic measures in China. But in the long run, the actual demand would still depend on economic fundamentals. After touching the bottom in Q1, the panel price would help largely to improve panel makers’ financial losses in the 2^nd half of the year with the stabilizing prices and sales volumes and the rising average utilization.     

It is the key strategic issue for panel makers to think about if they can bring out effective solutions in response to industrial structure changes while the whole panel industry faces the threats of Chinese panel makers’ rapid emergence and the stagnation of Chinese domestic market.