Market Trend

Between September 21st and October 5th, MCI index fell 84.9 points from 5714.4 to 5629.5. Weeks of consecutive decline in MCI index indicates a more conservative attitude toward the overall market. The line graph shows that the MCI index still has neither returned to its 20-day nor the 60-day level, instead, it is positioned at the 5900 points, creating counter-pressure – this is mainly due to the following: first, downstream customers’ inventory is currently at high level, therefore, the market is maintaining a “wait-and-see” attitude and gradually reduced product pull-in from panel makers, due to concerns of facing losses from excess inventory once again; second, panel prices have begun to decrease slightly since 2HSep, indicating that manufacturers and brand vendors can no longer withstand the pressure from rising costs, and requested that panel makers reduce prices to offset their losses; finally, panel makers’ shipments have reached a peak in September/October, therefore, the simultaneous decrease in panel price and shipment volume has resulted in the lack of confidence in the market outlook in 4Q09 and the continued weak performance of MCI index.