Panel price has hit the rock-bottom, but the timing for price rebound has yet to come

With the turning point of resignation announcement by President Papandreou of Greece this week, there has been increased hope for Greece to regain financial relief by EU. However, the uncertainty of European debit crisis has not been relieved, while the epicenter might shift from Greece to Italy. ECB officials have been hinting they may stop buying Italian bonds unless Italy has submitted a financial reform act. This is an indication of increased risk of debt crisis in Italy. As the second largest economy of Europe, France has hoped to avoid walking on the footsteps of Italy and Spain through full scale fiscal consolidation effort. Therefore, President of France has announced on 11/5 that French government reduce budget deficit by 20% next year through taxes and reduced government expenditures. All signs have been indicating the momentum behind market demand recovery may not be improved any time soon with unsolved issues in Europe.

According to the latest panel price forecast report published by WitsView, with the effect of production reduction in Q3 gradually surfacing and the support by stock preparation in advance among downstream customers for Lunar New Year, panel price trend has been gradually stabilized and expected to rebound from rock bottom in Q1 next year. The main reasons behind this price rebound are: