Market Trend

According to WitsView’s latest statistics data, the MCI rebounded by 32.5 points from 4519.5 points to 4552 points during the period from Jan 17th to Feb 6th. However, recently the MCI recovered and hovered below the monthly and quarterly averages. From an overview perspective, the global economy is on the path of gradual recovery on major nations’ announcements of monetary easing and stimulus packages. China’s 2012 official GDP growth was 7.8% YoY, and the January PMI published by China’s Statistics Bureau declined to 50.4 from 50.6 in December 2012, indicating although Chinese manufacturing industry was slightly expanding, the uncertainties brought by yen’s depreciation climbed, and China is expected to further boost economic growth by lifting domestic demands. The U.S. PMI increased to 53.1 from 50.2 in December last year, suggesting that the U.S. manufacturing was expanding, but potential risks remain in the U.S. as U.S. Congress has proposed tax on the rich, governmental expenditure cuts, and debt ceiling suspension. 

Asian nations have started currency depreciation competition in response to the rapidly weakening yen to maintain export competitiveness. Global economy shows unpredictable changes and fluctuations due to policy manipulations, and the end market shows similar trend. As the panel industry was supported by China’s favorable policies in H2’12, makers’ business performance has improved quarter by quarter. When facing the traditional slow season Q1 and the relatively high inventory level, panel prices enter a period of correction, as the market doubts panel makers’ ability to generate profits, the panel industry’s performance is expected to be determined by the sales results during the Chinese New Year and May 1st holidays.