Market Trend

Between July 28, 2008 to August 08, 2008, the MCI index fell from 6364.0 to 6102.5, down by 261.5 points. As predicted by WitsView, the index mostly fluctuated above the 6000 level during the past two weeks. The fresh decline was reflected in the persisting panel price falls in 1HAug. According to WitsView’s estimation, prices are set to fall by 7~9% in the IT segment, while TV panels will slip by 3~5%.

For the next two weeks, WitsView believes the MCI index will continue to stay above the 6000 level. Despite no concrete signs of an improvement in the market fundamentals, the production cutbacks by panel makers and traditional strong seasonality of Q3 will help prevent inventory levels from accumulating further and also ease some of the current glut. It remains to be seen whether the MCI index can break above the 6500 level and stay firmly above it.