Market Trend

According to WitsView’s latest statistic data, MCI jumped 453.2 points from 4368.1 points to 4821.3 points from November 15th to December 18th. MCI continued to strongly surge and reached nearly one year high. The U.S. Department of Commerce and China Customs’ recent release of export statistics were lower than expected. The U.S. saw biggest drop in October export in nearly four years and China’s export in November was lower than market’s projections, indicating the global end demand is still weak. But along with the year end approaching, the U.S. economy stabilizes and the negotiation on the fiscal cliff issue has been started, and China’ domestic consumption and investment indicators rebounded with PMI recovering to above 50, the line that demarcates accelerating from slowing growth, and showing a upward trend. As the economy gradually recovers in the U.S. and China, while the year-end promotion in the U.S and Europe and China’s subsidy policy support demand, the market increasingly holds an optimistic view toward the overall profitability in the panel industry.

According to WitsView’s November large-sized panel shipment report, in terms of shipment units, the MoM growth was 0.1% and the YoY growth was 12.6%. Among these, the global LCD TV panels shipment reached 22 million units, growing 2.6% MoM, to the record historical high, suggesting the restocking demand before the Chinese New Year heated up. However, the retail prices of large-sized TVs stirred a trend of dropping prices in North America during Black Friday, consumers’ expectation on low-priced products may affect the sales after the year-end peak season in the U.S. and Europe. On the other hand, the panel inventory in Chinese market has lifted and the panel demand is expected to weaken after December while entering the low season. Currently the utilization in panel manufacturers remains at an average of above 80%, and the panel price trend would be tested again by the supply glut.