Weekly Solar Market Price Trends: Mainland China Report 26

Solarzoom Solar Market Report Feb. 16, 2013 – Feb. 22, 2013

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Silicon material

The domestic market price of level-1 material is 140 CNY/kg, and 120 CNY/kg for level-2 ones.  The price of imported level-1 materials is $19.056 /kg, while it stands at $17.695 /kg for level-2 ones.

This is the first trading week after the Spring Festival holiday, and the market has no obvious direction, while trading remains slow. Both vendors and buyers are paying close attention to market conditions after the recent price increases. The quotation of most manufacturers remains stable. The quotation of level-1 silicon materials has been maintained between 135 CNY/kg and 140 CNY/kg. Actually, the trading condition is rather disappointing at this time; it is expected that price is not likely to have a further increase in the short term. The expectation is that trading volumes will increase, however.

Solar Wafer

This week, regarding mono-c-Si 125mm*125mm wafer, the price of tier-1 suppliers stood at 5.3 CNY/pc, and at 4.6 CNY/pc for tier-2 ones. As to mono-c-Si 156mm*156mm wafer, the price of tier-1 suppliers arrived at 8.5 CNY/pc, and 7.6 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.

There was another increase in the price of wafers. Since the end of the festival, many manufacturers have recovered their production, but they are not necessarily quoting new prices, as they are monitoring market developments. Most of the manufacturers remain optimistic about the market’s potential since there are signs of continuing uptrend. The output is expected to increase and even some manufacturers who shut down in previous days have also begun recovery of their production. At present, the wafer market is described as stable. More clarity on market trend is expected within the next two weeks, when a new subsidy policy will be announced.

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.

Early in the week, many manufacturers still remained closed down. The cells market had not yet recovered. Quotation remained stable and there were manufacturers that had plans to increase prices. At the end of the week, considering that many tier-1 firms have begun to increase their cell price, tier-2 companies followed suit. Presently, the market price is getting higher quotes, especially the price of mono-c-Si cells. Poly-c-Si cells are seeing low trade volume, and despite the uptrend prices have remained stable for the last two weeks.

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 4.4 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 3.50 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 4.55 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 3.95 CNY/W for tier-2 ones.

It is the first work week after the holiday; most domestic manufacturers have not recovered their operation yet. Since many workers are still off, utilization remains low. Many domestic power plants projects are expected to begin after the Spring Festival and carry on with demand. Most module manufacturers supply for orders while the price remains stable. Meanwhile, promoted by the uptrend in Q1, most domestic module manufacturers are confident about the demand and even some shut down manufacturers also intend to recover their production. Nevertheless, trading conditions remained sluggish. Presently, most module manufacturers suggest that the development of domestic distributing power projects depends on the subsidy programs, and any potential market improvement depends on the outcome of the new subsidy policy, which is expected to be published in early March.

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.