Like a terrible flood, the deteriorating global economy crushes market confidence

Debt crises in Europe and US have not only severely hit global stock markets, but also crushed the confidences among enterprises and consumer markets. Depressed by slow economic recovery, high unemployment rate, and inflation issue, the hot season market demands in the second half of the year for LCD TV, LCD monitor, and Notebook PC have been weak. Polarization of performances between Taiwanese and Korean panel makers have been indicated by the financial reports disclosed in Q2. The financial reports of Taiwanese panel makers have been disappointing with huge issues in the aspects of customer structure, product combination, cost advantage and production capacity reconciliation. With weak demand plus excessive production capacity, panel prices have been sliding again during July and August. Due to the ambiguous market visibility in Q3, panel makers have been flirting with special under table transaction modes in order to ensure customer orders. This will not only further worsen the market transparency of panel price, but also drag down the price trend.


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