Raw material price increase component price cuts in China's PV companies

Mr. Chen, sales manager of Shanghai Haiyouwei Electronic Technology Co., Ltd., which produces supporting equipment for photovoltaic modules, recently noticed that the price of photovoltaic modules has dropped significantly, but the price of polysilicon, the most important raw material for photovoltaic products, is still hovering at $90 per kilogram. The high position around. Market participants predict that with the expansion of polysilicon production, polysilicon prices will decline in the future.

In the first 10 months of this year, the price of PV modules did not dip sharply, and there was still a steady rise in the price. From the end of October to the beginning of December, the price has been significantly loosened. A management of China Light and Power (CSUN.NSDQ) said that the current component market price is about US$1.8/W, which is about 20% lower than the peak of US$2.2/W this year.

Research and consulting firm Solarbuzz statistics show that 125 watt high-grade PV module products (including inverters, power boxes, etc.) are currently quoted in the US and Europe market at 3.47 US dollars / watt, 3.09 US dollars / watt, than this year's highest peak The $3.92 and $3.53 were reduced by about 11%.

Zou Hui, a researcher at Orient Securities, said that the photovoltaic subsidy reduction policy of the German government, the world's largest PV demanding country, was fully implemented in October. The subsidies for photovoltaic systems such as ground systems and farm facilities were cut by more than 10%, which prompted investment. Businesses and banks have been rushing to build photovoltaic power plants by October this year, which has indirectly stimulated the enthusiasm of Chinese PV producers. From January to September 2010, the total installed capacity in Germany was 5.25G watts. After entering November, because many projects can not get the original high subsidies, plus Germany, Spain, Italy and other places are not suitable for field operations in winter, and there are rumors that the German government plans to continue to reduce 13% in 2011. With PV subsidies, sellers are depressed and demand is decreasing.

Conversely, the offer for polysilicon did not fall in November and December, and remained at around $80 to $90/kg, which is an increase from $75/kg in July-August this year.

Wang Haisheng, a researcher at Everbright Securities, said that raw material prices generally lag behind the adjustment of end products and electricity prices; while large Chinese polysilicon manufacturers such as Xuzhou Zhongneng and LDK will supply polysilicon to a wafer factory belonging to the same group, the market is not redundant. Polysilicon is optional. Foreign heavyweight polysilicon plants such as Hemlock and Wacker and MEMC have only released about 5,000 tons of capacity this year. The increase in production capacity will be after 2011, resulting in a steady increase in polysilicon prices. “However, the decline in PV module prices and the slowdown in demand growth next year will drive down the price of polysilicon.”

Wang Haisheng said that some Chinese battery suppliers have set a pre-sale price of $1.25/W for customers early next year, which is 5% lower than the current US$1.3/W.

“Although we believe that the demand for PV modules in 2011 may increase by about 30% compared with this year, the expansion of components is now too great, and the price is difficult to increase.” Mr. Chen, sales manager of Shanghai Haiyouwei pointed out.

As early as the first half of this year, Jingao Solar, Wuxi Suntech, CSI Artes and other international top ten battery component factories have a total capacity of 10G watts, and in November this year, Hengdian East Magnetic, Aerospace Electromechanical announced that they will spend With a large-scale expansion of battery capacity of about 2.5 billion yuan, the emerging companies such as Dongfang Risheng and Shanghai Chaori also plan to allocate a portion of the funds raised to increase production capacity.

China Merchants Securities researcher Wang Liusheng analyzed that China's domestic PV battery and module shipments may be above 7G watts (up 70% year-on-year), which is based on the global PV installed capacity of 15G watts (global installed capacity) It was about 100% higher than last year.) Next year, the global PV installed capacity may not exceed 20G watts, and China's supply will increase, but the competition between enterprises will be fierce compared to the doubling of production capacity. In addition, the subsidy quotas of European countries such as Germany will continue to be lowered, and the component factories will be forced to lower the sales price.

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