PVinsights:Upstream in Deadlock

Polysilicon prices remain stable this week since the strength of the current solid demand is still not strong enough to enhance price further. Moreover, as the expectations of the possible severe downturn in June, polysilicon suppliers prefer to hold the prices in order to secure more orders in the coming month, instead of raising prices. On the other hand, the prices outside China remain stable as well, pressured by ample supply and demand doubt. Since some non-Chinese multi-crystalline wafer suppliers have not retrieved to full productivity, the improvement in demand is still not sufficient to reverse the oversupply.


Polysilicon prices remain stable this week since the strength of the current solid demand is still not strong enough to enhance price further. Moreover, as the expectations of the possible severe downturn in June, polysilicon suppliers prefer to hold the prices in order to secure more orders in the coming month, instead of raising prices. On the other hand, the prices outside China remain stable as well, pressured by ample supply and demand doubt. Since some non-Chinese multi-crystalline wafer suppliers have not retrieved to full productivity, the improvement in demand is still not sufficient to reverse the oversupply.

Multi-crystalline wafer prices extend its stability this week as buyers take conservative approach for orders in June. As major Chinese multi-crystalline wafer suppliers are accelerating their transition of multi-crystalline wafer from slurry to diamond wire saw, they attempt to leverage the possible product mismatch to raise prices further, firstly aiming on smaller clients who have less bargaining power. However, most buyers are worry about the demand so as not to accept the price quotes immediately. From the perspectives from multi-crystalline wafer buyers, they have serious doubts about the demand strength of China after mid-June; therefore, they are cautious regarding the procurement for June orders. Since most buyers already stock up enough inventories in May, they intend to take wait-and-see approach but not to rush for next-month procurement amid risks of unclear demand outlook. Hence, the latest attempts of multi-crystalline wafer suppliers to raise the prices fail, because of the uncertainty of the demand landscape in China in June. On the other hand, mono-crystalline wafer suppliers insist on holding prices immobile this week. While the demand for mono-crystalline products remains robust, the concern on the price difference between mono-crystalline and multi-crystalline wafers continue to be the main reason that prevents mono-crystalline wafer suppliers to further increase the prices. Moreover, as major mono-crystalline wafer suppliers are expecting to ramp up more production in the coming months, the ease of supply may also limit the attempts for mono-crystalline wafer suppliers to raise the prices as well. As the result, mono-crystalline wafer prices remain unchanged this week.

Both multi-crystalline and mono-crystalline cell prices stay immobile this week, but the sentiment has waned due to mounting uncertainty regarding China demand outlook in June. Solar cell makers have sensed the alert that the price uptrend may not sustain further as the acceptance of buyers wanes and the demand outlook uncertainty mounts. Although the recent attempts by multi-crystalline wafer suppliers hiking price quotes for June have allured some solar cell makers to follow along, the prices for orders in May had been mostly settled and therefore the overall price remain steady. Even though some suppliers may still in attempts to raise the prices for orders in June, such attempts fail since procurement momentum on the demand side has gradually weakened. Therefore, the foreshadowed demand outlooks in China as well as conservative procurement are constantly blamed for preventing further price ascension of both multi- and mono-crystalline cells.

Solar panel prices nurse its losses this week after taking a combination of punches¡Xthe demand concern in China in the coming quarter, the heightened competition in the emerging countries, and Eurozone downbeat before the summer season. Hot China domestic demand failed to raise local module prices, as concerns on demand uncertainty after June 30 lingers; therefore, the prices in China remained stable. In the emerging countries, especially in India, Chinese 2nd and 3rd tier players have started brutal competitions for new projects, as well as some 1st tier suppliers. Demand in Europe is relatively weak as there were some competitions in May and June preparing for the coming summer holiday that keeps dragging prices down with limited scope. As Japan FiT reduction looming ahead, Chinese suppliers also leverage price competition that continue to pressure regional solar panel prices. Meanwhile, solar panel prices in the US are relatively steady due to the issue of Section 201. The price competition in the US has temporarily ceased as suppliers take wait-and-see stance before the upcoming result of the ITC hearing. Overall, module prices continue on a slide on persisting competition and lingering glut.

Featured Product

Sierra Instruments, Inc.- InnovaMass. Reinvented.

Sierra Instruments, Inc.- InnovaMass. Reinvented.

Sierra was the first to introduce a combination volumetric vortex and multivariable mass flow meter in 1997. Today, Sierra's completely redesigned InnovaMass® iSeries™ 240i/241i builds on two decades of success measuring five process variables for gas, liquid and steam with one connection. Now, with the latest hyper-fast microprocessors, robust software applications, field diagnostic and adjustment capability, and a new state-of-the-art flow calibration facility, Sierra's vortex iSeries delivers precision, performance, and application flexibility never before possible.