Market Trend

Between November 30th and December 14th, MCI index surged sharply by 333.6 points, from 5860.5 to 6194.1. This is the first time since the financial downturn that the index rose above the 6000-point mark – a dramatic improvement from ‘very low confidence level to ‘Low confidence level.’ Moreover, the 20-day average crossed above the 60-day average, and continued to rise after the crucial crossover. Based on revenues of the four major panel makers, even though the market has already entered the down cycle, brand vendors’ inventory replenishment stimulated the slight increase in the overall revenue and large-sized panel shipments in November. In the short run, having undergone the financial crisis, panel makers’ capacity control and brand vendors’ inventory management have become more conservative and precise. However, beginning in 2009, the industry has been benefitting from China's robust demand, which led to the consistent rise in the index, underscoring the significance of China’s rising domestic demand. In the future, however, as brand vendors’ continue to replenish their inventory, it remains to be seen whether panel prices will also increase accordingly.