Weekly Solar Market Price Trends: Mainland China Report 24

Solarzoom Solar Market Report Jan. 21, 2013 – Jan. 25, 2013

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Silicon material

The domestic market price of level-1 material is 135 CNY/kg, and 120 CNY/kg for level-2 ones.  The price of imported level-1 materials is $18.372 /kg, while it stands at $17.691 /kg for level-2 ones.

Early in the week the silicon material markets remained stable, while prices increased for domestic polysilicon. Several tier-2 manufacturers kept adjusting their quotation to follow tier-1 manufacturers. In addition to the increase of poly-c-Si material prices, it was reported that inventory was quickly consumed, due to downstream manufacturers raising their inventory levels. Based on the price increase of domestic silicon, many currently dormant polysilicon manufacturers are considering restarting their production. However, due to staff cuts and the considerable time required to recover production levels, they are very cautious in making early commitments and face a potential of uneven demand. Meanwhile, the price of domestic silicon materials is expected to continue its movement upward. It is expected that the price of imported silicon materials will also follow this pattern for the short term.

Solar Wafer

This week, regarding mono-c-Si 125mm*125mm wafer, the price of tier-1 suppliers stood at 5.1 CNY/pc, and at 4.5 CNY/pc for tier-2 ones. As to mono-c-Si 156mm*156mm wafer, the price of tier-1 suppliers arrived at 8.0 CNY/pc, and 7.5 CNY/pc for tier-2 ones. In terms of poly-c-Si 156mm*156mm wafer, the price of tier-1 suppliers reached 6.50 CNY/pc, and 5.8 CNY/pc for tier-2 ones.

The price of wafer had a noticeable increase in the early part of the week and, in particular, mono-c-Si wafers received a lot attention. This was motivated mainly by the 5-10 CNY/kg increase in the price of silicon rods. It is reflected by manufacturers who are still producing, that they have no inventories of mono-c-Si 125mm*125mm wafers and some manufacturers have enough orders for production runs lasting until the end of February. Manufacturers that are not producing, but were holding on to inventory instead of selling in at the discount have now enjoyed higher pricing due to an apparent lack of supply. At present, besides price increases, the relative strength of the demand caused most manufacturers to request payment with cash and to avoid credit terms. In addition, the price of mono-c-Si 125mm*125mm rods have seen an increase up to 20 CNY/kg in some cases, and combined with the popularity of mono-c-Si 125mm*125mm wafers the uptrend in prices for this type of the wafers is expected to continue.

Solar Cell

Currently, considering mono-c-Si 125mm*125mm cell, the price of tier-1 suppliers stands at 2.90 CNY/W, and 2.4 CNY/W for tier-2 ones. Regarding mono-c-Si 156mm*156mm cell, the price of tier-1 suppliers is at 2.95 CNY/W, and 2.45 CNY/W for tier-2 ones. In terms of poly-c-Si 156mm*156mm cell, the price of tier-1 suppliers has reached 2.55 CNY/W, and 2.35 CNY/W for tier-2 ones.

Quotations from most cell manufacturers increased this week, with mono cells exhibiting similar trends to those of wafer prices. Due to low supply of mono-c-Si 125mm*125mm cell and stable demand for this product, it has enjoyed the most significant increase. Prices for polycrystalline cells have also stabilized, including increases for tier-2 and tier-3 manufacturers. At the end of week, many cell firms had confirmed running out of inventory and having arrangements for production runs until the end of the February. Despite breakeven or low levels of profitability, the market sentiment is optimistic and further price increases are expected.  

Solar Module

Concerning mono-c-Si 190W module, the price of tier-1 suppliers stands at 4.30 CNY/W, and 3.95 CNY/W for tier-2 ones. As to mono-c-Si 245W module，the price of tier-1 suppliers is at 4.75 CNY/W, and 4.35 CNY/W for tier-2 ones. In terms of poly-c-Si 230W module, the price of tier-1 suppliers has reached 4.05 CNY/W, and 3.45 CNY/W for tier-2 ones. Concerning mono-c-Si 195W module, the price of tier-1 suppliers stands at 4.45 CNY/W, and 4.15 CNY/W for tier-2 ones. As to mono-c-Si 250W module, the price of tier-1 suppliers is at 4.85 CNY/W, and 4.5 CNY/W for tier-2 ones. And, in terms of poly-c-Si 240W module, the price of tier-1 suppliers has reached 4.20 CNY/W, and 3.9 CNY/W for tier-2 ones.

With the Spring Festival coming, the utilization of most manufacturers is getting lower, while there is a balance between supply and demand, contributing to small increases in module pricing. Regarding the foreign markets, stock inventories have almost been cleared out, and the price has recovered to market levels. Most domestic module manufacturers are not planning to build up inventories at port destinations, without understanding demand. Also, payment terms with foreign buyers have been more rigorous of late. Domestically, since most demand is originating from Golden Sun projects, credit terms are still in place; however, terms are improving for the sellers. Efficiency of poly-c-Si cells is on the rise; most poly-c-Si modules are between 240W and 245W, and they have higher performance-to-price ratio than mono-c-Si ones, which removed lower-rated mono-c-Si modules from the market. High-efficiency mono-c-Si 156mm modules and poly-c-Si 156mm modules are becoming the mainstream. Meanwhile, most manufacturers reflected that they will focus on shipping, and they would maintain their quotations as stable before the Spring Festival. AD & CVD investigation in both USA and Europe are leading many module firms to look into the emerging markets in order to increase their selling channels.

Solarzoom’s Export Module Shipment Data views have been published in Q4 Export Data Presentation, highlighting the breakdown of Q4 shipments by US-listed companies and breakdown by country destinations during Q4, 2012. List of available Monthly Export Data reports and Q4 Export Data Summary can be accessed at SPVI Solar Reports

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.