Solarzoom Solar Market Report Sept 10-Sept 14, 2012
Currently, the domestic market price of level-1 material stands at 148.5 CNY/kg and 140 CNY/kg for level-2. As to imported polycrystalline silicon materials, the price of level-1 reached $20.218/kg, and $18.870/kg for level-2, without major market changes.
The price of wafer dropped slightly in the past week. Currently, the price of mono-c-Si 125mm*125mm wafer from tier-1 suppliers stands at 5.2 CNY/Pc, and 4.6 CNY/Pc for tier-2. As to mono-c-Si wafer 156mm*156mm，the price of tier-1 suppliers arrived at 8.2 CNY/Pc, and 7.8 CNY/Pc for tier-2. And in terms of poly-c-Si 156mm*156mm wafer, the price of tier-1 suppliers reached 7 CNY/Pc, and 6.5 CNY/Pc for tier-2.
The European Commission has started an anti-dumping investigation into China’s solar products, and considering the uncertain retrospective period, most manufacturers are cautious in shipment. Owing to the decreasing cell demand, the orders for wafers are also declining. Now, only the price of long-term orders is remaining stable. The demands for mono-c-Si wafers are mainly mono-c-Si 125mm wafers, and the price is stable. Nowadays, more and more manufacturers continue to shut down, and they were mainly clearing their inventories and collecting receivables this week. Facing serious financial pressures, some enterprises choose to start their cost control through layoffs.
This week, the price of cell had a modest drop. At present, concerning mono-c-Si 125mm*125mm cell, the price of tier-1 suppliers stood at 3.2 CNY/W and 2.65 CNY/W for tier-2. As to mono-c-Si 156mm*156mm cell，the price of tier-1 arrived at 3.20 CNY/W, and 2.75 CNY/W for tier-2. In terms of poly-c-Si 156mm*156mm cell, the price of tier-1 suppliers reached 2.70 CNY/W, and 2.40 CNY/W for tier-2.
Affected by the disappointing shipment of modules, the demand for cells is soft and the orders are decreasing. Now, most cell firms hold a pessimistic attitude toward the market, and they have changed their production program to match their orders, keeping low inventories. In addition, owing to the poor condition of receivables’ collection, some manufacturers are suffering liquidity issues. So, they have to shut down or stop their production intermittently. Equipment is being offered on the market and some with the capital are upgrading their equipment using second-hand purchases.
For mono-c-Si module 190W, the price of tier-1 suppliers stood at 4.45 CNY/W, and 4.1 CNY/W for tier-2. Concerning mono-c-Si module 195W, the price of tier-1 suppliers stood at 4.85 CNY/W, and 4.2 CNY/W for tier-2. With mono-c-Si module 245W，the price of tier-1 suppliers arrived at 5.2 CNY/W, and for 4.7 CNY/W for tier-2. As to mono-c-Si module 250W，the price of tier-1 suppliers arrived at 5.3 CNY/W, and 4.8 CNY/W for tier2 ones. In terms of poly-c-Si module 230W, the price of tier-1 suppliers reached 4.3 CNY/W, and 3.85 CNY/W for tier-2. In terms of poly-c-Si module 240W, the price of tier-1 suppliers reached 4.5 CNY/W, and 4.1 CNY/W for tier-2.
The price of module had a further drop, especially in mono-c-Si modules. This week, the turnover at the port abroad is very low. Most buyers are cautious, despite a slight rise in the Euro rate exchange. The worry over the EU’s anti-dumping investigation has been weakened. Most China-based firms are now adjusting their industrial structure to explore other emerging markets or set up factories abroad. Regarding some manufacturers who have made deliveries to Europe in advance, their inventory volume in the European market is quite high. Those who didn't make such deliveries still have no plan to ship there. Most manufacturers are now busy with responding to the anti-dumping investigation. In recent days, the relations between China and Japan have deteriorated, which did have an impact on not only the shipment to Japan, but also on European customers. What's worse, India‘s government also plans to follow the EU and launch an investigation into China’s solar products, which put more pressure on the sales of module firms.
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.