PVinsights: Strong dollar pulls solar components lower

Solar panel prices continue to tumble this week. The strengthen greenback has resulted a pullback on major currency of RMB, Yen and Euro that negatively impacts solar panel prices as translated to dollar term. In China, as the demand has seen tempered a bit, solar panel price remain quite stable in RMB term, but results a price drop when it translates into dollar term. Similar situation also applies to the European market. Moreover, besides the impact of Euro depreciation, the demand for solar panels also seems to become quitter due to the upcoming holiday season in December. Meanwhile, although Japan and India are stepping into the traditional hot season, the improved demand and prices in solar module prices in regional currency could hardly to balance off the impacts of strong dollar. In US, solar panel prices continue to slump due to intensified price competition by solar module makers.


Solar panel prices continue to tumble this week. The strengthen greenback has resulted a pullback on major currency of RMB, Yen and Euro that negatively impacts solar panel prices as translated to dollar term. In China, as the demand has seen tempered a bit, solar panel price remain quite stable in RMB term, but results a price drop when it translates into dollar term. Similar situation also applies to the European market. Moreover, besides the impact of Euro depreciation, the demand for solar panels also seems to become quitter due to the upcoming holiday season in December. Meanwhile, although Japan and India are stepping into the traditional hot season, the improved demand and prices in solar module prices in regional currency could hardly to balance off the impacts of strong dollar. In US, solar panel prices continue to slump due to intensified price competition by solar module makers. As the result, overall solar panel prices weaken as disturbed by strong dollar and fierce competition in Northern American market.

Amid weakening solar panel prices, both multi-crystalline and mono-crystalline solar cell prices continue to face downward correction in this week. As solar module prices being pressured, the buyers of solar cells become more reluctant to accept price hike. Moreover, since the demand gradually tempers and solar cell production rapidly retrieves, the pressures of weakening solar cell prices have mounted. Solar cell makers, on the other hand, have started to accommodate with requests from buyers to offer discounted prices as they sense weakened buying appetites. In addition, multi-crystalline cell prices are confronting more downturn pressure in contrast to mono-ones. Due to the restrained supply of mono wafers, the supply of mono-crystalline cells remains relatively tight, particularly for mono-PERC cells. Nevertheless, since the downstream prices and buyers appetite weakens, both multi-crystalline and mono-crystalline cells continue to decline this week.

Multi-crystalline wafer prices decline this week due to sharp RMB depreciation. Since downstream solar cell makers retrieve production rates rapidly, the demand for multi-crystalline wafer is actually quite solid. However, the increased supply of multi-crystalline wafer and the depreciation of RMB have sent multi-crystalline wafer prices lower this week. On the other hand, mono-crystalline wafer prices hold steady this week. Due to the solid demand and the limited supply of mono-crystalline wafers, the mono-crystalline wafers in RMB term are able to increase slightly despite declining downstream mono cell prices. Mono-crystalline wafer suppliers have strategically adjust the prices higher in RMB term in order to offset the negative impacts of RMB deprecation. Hence, mono-crystalline wafer prices remain stable this week.

Polysilicon prices hold immobile this week. Although Chinese polysilicon suppliers continue to strengthen polysilicon prices by leveraging tight supply and recent anti-dumping review against Korean polysilicon suppliers, the increment of polysilicon prices in RMB term is only limited as the downstream buyers acceptance wanes. Moreover, such price improvement in RMB term is also being hindered in USD term due to sharp RMB depreciation. On the other hand, following Chinese polysilicon suppliers, overseas polysilicon prices also hold still this week. As the result, overall polysilicon prices remain steady this week.

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