26 September 2012
Posted in News - SPVI news
Solarzoom Solar Market Report Sept 17-Sept 21, 2012
The domestic market price of level-1 material stands at 143 CNY/kg, and 133 CNY/kg for level-2. As to imported polycrystalline silicon materials, the price of level-1 reached $20.213/kg, and $18.866/kg for level-2.
This week, the price of domestic silicon material had a further decline, but imported silicon had no great change due to the fluctuation of the exchange rate. Recently, the market remains gloomy and the trading conditions are disappointing, which made most manufacturers lose confidence in the market. At present, the inventory volume of those manufacturers who are still in production is small and they keep cutting their output. However, in comparison to wafer manufacturers, at present, since the circulation of wafer is small, their inventory volume of silicon material is still excessive. Besides specific manufacturers who continue to raise inventories, most manufacturers are paying close attention to the market and they are cautious about purchasing silicon materials. Most manufacturers are not willing to undersell their inventories. However, in order to promote the downstream demands, specific firms will sell their products with a low price, but it still is difficult to make a deal.
The price of wafer dropped slightly in this week. Currently, concerning mono-c-Si 125mm*125mm wafer, the price of tier-1 suppliers stood at 5 CNY/pc, and 4.6 CNY/pc for tier-2. For mono-c-Si wafer 156mm*156mm，the price of tier-1 suppliers was at 8 CNY/pc, and 7.6 CNY/Pc for tier-2. In terms of poly-c-Si wafer 156mm*156mm, the price of tier-1 suppliers remained at 7 CNY/pc, and 6.5 CNY/pc for tier-2.
Presently, most quotations are from large-scale manufacturers, while many middle-sized ingot and wafer slicing manufacturers have shut down. Only a few mono-c-Si wafer manufacturers are still producing and selling. Large-scale manufacturers have more long-term orders, so they can still maintain a small capacity. There are very few wafer manufacturers in the market at present.
Prices this week have stabilized. At present, concerning mono-c-Si cell 125mm*125mm cell, the price of tier-1 suppliers stood at 3.1 CNY/W, and 2.6 CNY/W for tier -2. As to mono-c-Si 156mm*156mm cell，the price of tier-1 suppliers arrived at 3.20 CNY/W, and 2.75 CNY/W for tier-2. And 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.
Presently, only those who have signed orders or have power plants projects are still in production, while others are shut down. Some manufacturers who have large volumes of inventory are active in seeking buyers. However, since most buyers will always drive a hard bargain, the trading volume is not too large. Since most of overstocked downstream modules were multi-c-Si modules, shipments of multi-c-Si cells were very difficult. Market quotations became chaotic quoting liquidation pricing as low as 1.5 Yuan/W. The price of mono-c-Si cells kept relatively strong, but the demand remains sluggish. Now, there are some poly-c-Si cells whose efficiency is 16.5% in the market, and the prices are below 7 CNY/pc. But the demand is still disappointing. Some Grade B cells are more popular at the moment. Although many manufacturers have shut down, they have not withdrawn from the market.
Currently, concerning mono-c-Si 190W module, the price of tier-1 suppliers stood at 4.45 CNY/W, and 4.0 CNY/W for tier-2. For mono-c-Si 195W module, the price of tier-1 stood at 4.75 CNY/W, and 4.2 CNY/W for tier-2. With mono-c-Si module 245W，the price of tier-1 arrived at 5.1 CNY/W, and 4.65 CNY/W for tier-2 ones. As to mono-c-Si 250W module，the price of tier-1 suppliers arrived at 5.2 CNY/W, and 4.8 CNY/W for tier-2. In terms of poly-c-Si module 230W, the price of tier-1 suppliers reached 4.25 CNY/W, and 3.80 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 majority of module manufacturers operate with 50% or less utilization. Layoffs are very common. Though most people expected the demand to rise as a result of the domestic power plant installations starting in Q3, only a limited number of enterprises are benefitting from this. Most manufacturers do not participate in this segment. Inventories at foreign ports are at low levels, where the preference is given to cheaply priced products. Low-efficiency modules, which are priced below €0.4/w, are quite competitive on the market.
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.