28 August 2012
Posted in News - SPVI news
Solarzoom Solar Market Report Aug 20-Aug 24
The domestic market price of level-1 material stood at 150 CNY/kg, and 140 CNY/kg for level-2. As to imported polysilicon, the price of level-1 reached $20.522/kg and $18.902/kg for level-2.
Last week, the price of silicon material in the domestic market had some fluctuation. The price of domestic level-1 poly-c-Si materials dropped 2%. The price of imported poly-c-Si materials didn’t change too much, and was only influenced by the exchange rate. Manufacturers who are still in production decreased their inventories slightly, but downstream manufacturers know inventory is high, except for few enterprises that have little silicon; most manufacturers had paid close attention to price movement. What’s more, some wafer manufacturers also were selling their surplus silicon; therefore, volume of cheap supply had increased and will further impact pricing.
The price of silicon wafer in the domestic market fell slightly this week. The price for 125mm*125mm mono-c-Si wafer was 5.5 CNY/pc for tier-1 and 4.9 CNY/pc for tier-2. The price for 156mm*156mm mono-c-Si wafer was at 9.2 CNY/pc for tier-1 and 8.6 CNY/Pc for tier-2. In terms of 156mm*156mm poly-c-Si wafer, the price of tier-1 suppliers reached 7.4 CNY/pc and 6.8CNY/pc for tier-2.
Some B-class Taiwanese wafers entered into the domestic market in large quantity, which aggravated low-end pricing. Many manufactures are asking for the full payment on purchase, and very few accept sales on credit cycle. There is very little demand for wafers; therefore, the price has reached the cash cost of production, which continues to pressure some small and medium-scaled manufacturers who are forced to stop production. With the approach of the investigation period of the AD&CVD case in Europe, domestic photovoltaic enterprises are active in taking measures to face the trouble.
Currently, concerning 125mm*125mm mono-c-Si cell, the price of tier-1 suppliers stands at 3.3CNY/W and 2.9CNY/W for tier-2s. For 156mm*156mm mono-c-Si cell，the price of tier-1 suppliers was at 3.35CNY/W and 2.95CNY/W for tier-2s. In terms of 156mm*156mm poly-c-Si cell, the price of tier-1 supplier reached 2.75CNY/W, and 2.55CNY/W for tier-2s.
Domestic market transactions remained sluggish, and the utilization is still low. The B-class cells became attractive, which made the pricing confusing. Suffering from pressure on both the upstream and downstream, the shipments of most manufacturers were disappointing, and production has been cut to clear the inventory. The trend remains downward for the near future.
In recent days, the price of module had a moderate decline. Now, concerning 190W mono-c-Si module, the price of tier-1 suppliers stands at 4.60CNY/W and 4.20 CNY /W for tier-2s. Concerning 195W mono-c-Si module, the tier-1 price stands at 5.05 CNY /W, and 4.45 CNY/W for tier-2. For a 245W mono-c-Si module, the price of tier-1 suppliers arrives at 5.250 CNY/W and 4.90 CNY/W for tier-2s. For a 250W mono-c-Si module，the price of tier-1 suppliers arrived at 5.4 CNY/W, and 5.00 CNY/W for tier-2s. In terms of 230W poly-c-Si module, the price of tier-1 suppliers reached 4.50 CNY/W, and 4.1 CNY/W for tier-2s. In terms of 240W poly-c-Si module, the price of tier-1 suppliers reached 4.70 CNY /W and 4.4 CNY /W for tier-2s.
The price of module decreased, while the investigation into the AD&CVD case in Europe is nearing. Another reaction to this is a drop in inventory turnover in European ports. Because of the uncertainty about cuts in policy in Italy, the need for PV power plants has decreased there as well. Overall, the European market remains sluggish. What’s more, in China, the PV power plant projects haven’t reached the expected rate. Utilization rates are being reduced and cash flow is becoming scarce. More and more tier-2 suppliers slowed down or stopped production and started to offer their own equipment for sale. Modules pricing is expected to fluctuate in the near term with the downtrend. Since the ASP is lower than the baseline cost of some manufacturers, the modules made with B cells are becoming increasingly popular as an alternative.
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)
Prices quoted in CNY include 17% VAR domestic tax.