PVinsights: Solar Prices Send Bear Signal with Glut Concerns Lingering

Polysilicon price remain on a gradual slide this week. Although polysilicon price in China remain stable this week, price in overseas market has seen continuous decline. In China, since downstream wafer manufacturers currently remain high production utilization rates, solid demand fundamentals help to sustain the prices from falling in the short term. However, the price pressure continues to build up as more production capacities by major Chinese suppliers and new entrants will come on stream in near future. On the other hand, polysilicon in overseas market continue on the descent. With REC ramping up production and Wacker increase the volume in Pacific Asia, the increasing supplies outside of China are one of the reasons to deteriorate polysilicon prices. Moreover, as the downstream prices also see signs of weakening, it also impacts the polysilicon price trend. As the result, overall polysilicon prices drop continuously this week due to sliding prices in overseas market.


Polysilicon price remain on a gradual slide this week. Although polysilicon price in China remain stable this week, price in overseas market has seen continuous decline. In China, since downstream wafer manufacturers currently remain high production utilization rates, solid demand fundamentals help to sustain the prices from falling in the short term. However, the price pressure continues to build up as more production capacities by major Chinese suppliers and new entrants will come on stream in near future. On the other hand, polysilicon in overseas market continue on the descent. With REC ramping up production and Wacker increase the volume in Pacific Asia, the increasing supplies outside of China are one of the reasons to deteriorate polysilicon prices. Moreover, as the downstream prices also see signs of weakening, it also impacts the polysilicon price trend. As the result, overall polysilicon prices drop continuously this week due to sliding prices in overseas market.

Multi-crystalline wafer price drop incrementally this week. As demand outlook for March seems clouded with uncertainties, the price trend of multi-crystalline wafer is poised to drop. Moreover, as multi-crystalline wafer suppliers remain high utilization rate at current moment, the supplies of multi-crystalline wafer is once again topping the demand, causing multi-crystalline wafer to plummet. Also, recently the development of black silicon further disrupts the price trend of multi-crystalline wafer by its competitive cost structure. Meanwhile, after major mono-crystalline wafer adjusted the price up in previous week, the price of mono-crystalline wafer price hold steady this week. Supply shortage of mono-crystalline wafer remains as the main reason to sustain the mono-crystalline wafer prices. However, since more solar cell makers shift production to multi-ones and the downstream prices start to falter, the stability of mono-crystalline wafer prices would be hardly to keep up.

Both prices of multi-crystalline and mono-crystalline cells drop marginally this week due to the absence of installation boom. Market sentiment has turned around over recent weeks as pessimism mounts that demand has been disappointing since post-holiday return. In March, because both the procurement volume and price trend have declined, solar cell makers are forced to comply with the discounts in order to digest the stockpiles. On the other hand, mono-crystalline cell prices also trending downward even though the supply of mono-crystalline cell is relatively restrained. With depressed module prices, elevated price quotes of mono-crystalline cells have made many buyers hesitate to buy. Moreover, since the supply of mono-crystalline wafer is so limited and the buyers could hardly afford the prices, more solar cell makers have choose to do tolling rather than sell the products directly. As the result, both multi-crystalline and mono-crystalline cell prices are trending downwards this week.

Solar panel price slide continuously this week. As the installation was not as robust as expected and recent released low bids for PV projects suggest fierce competition among module suppliers, the solar panel price downtrend continue to reverberate over the near term. Although solar panel prices in China and Japan hold stable as the intensity of competition seems cooling down temporarily, the persistent price competition in EU, US, and India continue to drag the overall solar panel price down. Although demand in India remain relatively stable, solar panel price trend in India also sees noticeable drop with recent released low tariffs of several local PV projects. As the result, the downstream module prices continue to deteriorate this week as global glut set the tone of the price downtrend.

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