Solarzoom Solar Market Report July 30-Aug 3, 2012
Pricing for the domestic level-1 silicon material stands at 155 Yuan/kg and 145 Yuan/kg for level-2 material. The price of imported silicon material (level-1) is $20.88/kg and $20.20/kg for level-2 suppliers.
In the first trading week of August, the price of polycrystalline silicon remained in the downtrend; prices of the majority of domestic manufacturers have been below the operational cost. Due to the overcapacity in the market, the majority of China-based solar firms competed intensively by cutting down their prices sharply. What’s more, influenced by imported silicon material, the market in the latter half of the year is forecasted to be lethargic. Although the price is likely to stop decreasing thanks to the national AD&CVD case against polycrystalline imports, there is no hope for a rebound. Worse, the PV market is shrinking sharply since the debt crisis in Europe, so the price of polycrystalline will remain gloomy.
This week, the price of silicon wafer fell rapidly. With regards to 125mm*125mm mono-c-Si wafer, the price of tier-1 suppliers stands at 5.90 Yuan/pc and 5.40yuan/pc for tier 2. For 156mm*156mm mono-c-Si wafer，the price of tier-1 suppliers was at 9.70 Yuan/pc and 9.30 Yuan/pc for tier 2. In terms of 156mm*156mm poly-c-Si wafer, the price of tier-1 suppliers reached 7.65 Yuan/pc, and 7.25 Yuan/pc for tier-2 ones.
Since the European market remains uncertain in August, the domestic wafer market still has difficulties in getting rid of the glut. Most China-based solar firms are suffering from great pressure due to both disappointing shipments and the descending selling price. In recent days, given that the circulation volume of 125m*125mm mono-c-Si wafer gets lower and more manufacturers stopped their production, the market price of 125mm*125mm mono-c-Si wafer may stabilize in the short term because of it. On the other hand, the manufacturers still have to face the slack demand for 156mm*156mm mono-c-Si wafer and 156mm*156mm poly-c-Si wafer, operating with the lowered pricing.
For 125mm*125mm mono-c-Si cell, the price of tier-1 suppliers stands at 3.4 Yuan\W and 3.00 Yuan\W for tier 2. With regard to 156mm*156mm mono-c-Si cell，the price of tier-1 suppliers is quoted at 3.50 Yuan/W, and 3.10 Yuan\W for tier 2. There was a drop in pricing of 156mm*156mm poly-c-Si cell. The price of tier-1 suppliers reached 2.90 Yuan/W, and 2.70 Yuan\W for tier-2 ones.
Currently, the price of domestic cell is showing drastic fluctuations. The majority of cell manufacturers reduced their pricing to improve sales volume; however, considering that many enterprises are suffering losses, the price decline is slowing down. This week, the domestic mono-c-Si cell market is still sluggish. The order volume has seen no improvement, and there are more and more reports of shutdowns. Supported by the start of domestic projects, shipments from a few poly-c-Si cell manufacturers got a boost, but due to the hard bargains available in the market, they are not returning profit. At present, many small and medium-sized cell manufacturers continue to ship, while ignoring losses and adding more stress to their finances. In the near term, the market will likely remain depressed.
With regard to 190W mono-c-Si module, the price of 1st-tier suppliers stands at 4.95 Yuan/W, and 4.60 Yuan/W for 2nd-tier ones. For the 245W mono-c-Si crystalline module, the price of 1st-tier suppliers is at 5.35 Yuan/W, and 5.05 Yuan/W for 2nd-tier ones. In terms of 230W poly-c-Si crystalline module, the price of 1st-tier suppliers reaches 4.80 Yuan/W, and 4.45 Yuan/W for 2nd-tier ones. Considering 195W mono-c-Si module, the main price of 1st-tier suppliers stands at 5.3 Yuan/W, and 4.8 Yuan/W for 2nd-tier ones. Concerning 250W mono-c-Si module, the price of 1st-tier suppliers is 5.55 Yuan/W, and 5.1 Yuan/W for 2nd-tier ones. When it comes to 240W poly-c-Si module, the price of 1st-tier suppliers is 5 Yuan/W, and 4.75 Yuan/W for 2nd-tier ones.
Although many small and medium-sized manufacturers have ceased production, the tendency of low price competition remains unchangeable due to the over-capacity in the whole industry. Some small and medium-sized enterprises are now selling their workshops and equipment, while some large-scale manufacturers are buying this second-hand equipment at bargain prices. Currently, it appears there is an uptick in module demand in the Western China; however, pricing remains under downward pressure and conditions are expected to remain constant for the near term.
Tier-one companies include the U.S and HK stock market listed entities, with large capacity and product circulation in the market, like Suntech Power Holdings Co., Ltd. (ADR)(NYSE:STP), Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE: YGE), Canadian Solar Inc. (NASDAQ: CSIQ), Trina Solar Limited (NYSE: TSL), JA Solar Holdings Co., Ltd. (ADR)(NASDAQ: JASO) and ReneSola Ltd. (ADR)(NYSE: SOL)
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