Market Trend

According to WitsView’s latest statistics, MCI surged by 168.8 points from 4199.3 points to 4368.1 points during the period of 18th Oct. to 15th Nov.. Currently MCI is back on the upward path with the monthly average line supporting the trend. The overall market risk remains relatively high while Europe still faces the danger of falling into the 2nd recession, the market takes a short position in crude oil, and the U.S. has announced the accommodative monetary policy, leading to higher inflation caused by hot money floods. 

However, both the U.S. and China have showed recovering PMIs, suggesting the official policies gained some traction and stirred short-term affects. Although the U.S. sees the fiscal cliff approaching, putting the world’s No.1 economy in an awkward situation, the market expects the Federal Reserve to continue the easing program. China has also pledged to carry out the 12th Five-Year Plan in the 18th Party Congress to enforce the domestic demand and promote the real economic growth. Based on WitsView’s October large-sized panel shipment survey, the shipment grew 1.5% MoM by units with LCD TV panel shipment reaching the one-year high in the month, which was lifted by the year-end promotion in the U.S. and Europe as well as the energy-saving subsidy policy in China. The tablet panel shipment increased dramatically 24% MoM thanks to the new models unveiled by brand vendors in H2’12.      

With the Q3 financial statement being published, the overall panel industry has largely trimmed losses. Korean and Chinese panel makers have turned their net margin from negative to positive while Taiwanese panel makers’ gross margin has climbed. Among which, Innolux (originally named as CMI) and HannStar have swung back to profits. In the condition of new technology being applied and new size being switched, along with favorable factors such as China’s subsidy policies, the panel supply and demand situation would move forward in a healthy and balanced environment. The market would also look forward to the further improvements in manufacturers’ Q4 financial reports.