Weekly Solar Market Price Trends: Mainland China Report 13

Solarzoom Solar Market Report Oct 22-Oct 26, 2012

---

Silicon material

The domestic market price of level-1material is 128 CNY/kg, and 120 CNY/kg for level-2 ones.  The price of the imported level-1 materials is $19.59 /kg, while it stands at $18.99 /kg for level-2 ones.

At present, most silicon material manufacturers feel worried about the future market. Currently, the dealing prices of those silicon manufacturers who keep selling are mainly near the cost, and some wafer manufacturers are also underselling their spare inventories of silicon materials, which increases the circulation volume of cheap silicon. Some shut-down silicon material manufacturers still have inventories of silicon, but they have stopped selling and they are monitoring market direction at this point. Meanwhile, some manufacturers who are still in production said that due to the stagnant purchasing demand and the shrinking inquiries, they were suffering great pressure on sales.

Wafer

Concerning mono-c-Si 125mm*125mm wafer, the price of tier-1 suppliers stood at 5.0 CNY/pc, and at 4.2 CNY/pc for tier-2 ones. As to mono-c-Si 156mm*156mm wafer, the price of tier-1 suppliers arrived at 7.8 CNY/pc, and 7.4 CNY/Pc for tier-2 ones. In terms of poly-c-Si 156mm*156mm wafer, the price of tier-1 suppliers reached 6.65 CNY/pc, and 6.0 CNY/pc for tier-2 ones.

Currently, the wafer demand is quite slow and there are difficulties in clearing inventories; considering the sluggish demand, many small- and medium-scale manufacturers cannot suffer the pressure anymore, and they decided to shut down.

Cell

Currently, considering mono-c-Si 125mm*125mm cell, the price of tier-1 suppliers stood at 2.9 CNY/W, and 2.4 CNY/W for tier-2 ones. Regarding mono-c-Si 156mm*156mm cell, the price of tier-1 suppliers arrived at 3.0 CNY/W, and 2.55 CNY/W for tier-2 ones. In terms of poly-c-Si 156mm*156mm cell, the price of tier-1 supplier reached 2.5 CNY/W, and 2.1 CNY/W for tier-2 ones.

Utilization of domestic cell manufacturers remains low. Under such a situation, the inventories are being cleared, and the pricing is becoming somewhat stable. At present, some cell manufacturers who have power plant projects can still support their operation, but others are suffering great pressure, and some of them have to cut their output and even shut down. Under those conditions few cell manufacturers are working on technology and processing improvements in order to maintain operations. Manufacturers think that improving the liquidity should be given top priority; therefore, they request payments in cash. All agencies, both downstream and upstream, are very cautious in purchasing and liquidity is an issue for all; therefore, the market remains slow.

Module

Concerning mono-c-Si 190W module, the price of tier-1 suppliers stood at 4.35 CNY/W, and 3.95 CNY/W for tier-2 ones. As to mono-c-Si 245W module，the price of tier-1 suppliers arrived at 5.0 CNY/W, and 4.55 CNY/W for tier-2 ones. In terms of poly-c-Si 230W module, the price of tier-1 supplier reached 4.1 CNY/W, and 3.65 CNY/W for tier-2 ones. Concerning mono-c-Si 195W module, the price of tier-1 suppliers stood at 4.60 CNY/W, and 4.0 CNY/W for tier-2 ones. As to mono-c-Si 250W module, the price of tier-1 suppliers arrived at 5.10 CNY/W, and 4.6 CNY/W for tier-2 ones. And in terms of poly-c-Si 240W module, the price of tier-1 suppliers reached 4.40 CNY/W, and 4.0 CNY/W for tier-2 ones.

The market price of module has been below the cost, so price – while still decreasing – is seeing fractional changes. This reduction in price is despite most manufacturers seeing favorable amounts of orders. Foreign buyers worried that the price will have an increase due to AD & CVD investigation are buying more, which made demand in both Europe and the US to have a certain increase in recent days. Domestic manufacturers are now cautious in shipping to Europe and the US, and they will not increase their shipment blindly in order to avoid the risk of carrying inventory. Some small- and medium-scale manufacturers who didn’t respond to the AD & CVD investigation plan to give up these two markets and they tend to transfer their business to other emerging markets. Also, they said they would keep developing their business domestically. Nowadays, most domestic manufacturers are transferring their business to the downstream market. Those large-scale manufacturers who are doing power plant projects mainly use their own modules, which can help them to consume part of their capacities, while most small- and medium-scale manufacturers, except some shut-down ones, are taking OEM orders or transfer to produce small-scale systems. There is a certain level of market stability due to those changes.

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