Temat: Weekly Solar Market Price Trends: Mainland China Report 19

Silicon material

The domestic market price of level-1material is 115 CNY/kg, and 110 CNY/kg for level-2 ones. The price of imported level-1 materials is $18.337 /kg, while it stands at $17.794 /kg for level-2 ones.

Currently, pricing for polysilicon products remains stable. Production and utilization levels are low, and a large number of companies have shut down for what could be a long time. In addition, the volume of imported silicon has been steadily decreasing. The majority of tier-1 companies were buying imported silicon, due to its high quality; however, with improvements of the domestic product, in association with price decreases, the demand for imports is diminishing. Financially, most manufacturers are dedicated to cashing in their accounts receivables. Some small trading volume is available and while the financial condition of buyers is not favorable, most of the payment arrangements involve credit sales, but with only one-month credit terms.

Solar Wafer

This week, regarding mono-c-Si 125mm*125mm wafer, the price of tier-1 suppliers stood at 5.0 CNY/pc, and at 4.2 CNY/pc for tier-2 ones. As to mono-c-Si 156mm*156mm wafer, the price of tier-1 suppliers arrived at 7.6 CNY/pc, and 7.2 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 5.5 CNY/pc for tier-2 ones.

While pricing is remaining stable, due to country-wide wafer operations shutdowns, those who are still in production are seeing a small increase in orders, mostly from buyers who would like to replenish some of their inventory for the New Year. Payment terms are favoring buyers and most trading includes sales with credit terms.

Solar Cell

Currently, considering mono-c-Si 125mm*125mm cell, the price of tier-1 suppliers stands at 2.7 CNY/W, and 2.3 CNY/W for tier-2 ones. Regarding mono-c-Si 156mm*156mm cell, the price of tier-1 suppliers is at 2.9 CNY/W, and 2.35 CNY/W for tier-2 ones. In terms of poly-c-Si 156mm*156mm cell, the price of tier-1 suppliers has reached 2.45 CNY/W, and 2.15 CNY/W for tier-2 ones.

The cell market has improved this week and pricing has further stabilized. Manufacturing capacity is at a low level of utilization, and there is limited circulation of cells on the market. Those who have remained operational actually started seeing an improvement in orders, partially due to OEM inquiries. Prices remain at the recent bottom, but payment agreements are becoming more satisfactory and most companies are no longer willing to have credit days added to payment terms. It is expected that the price will maintain firm at this low level in the short term.

Solar Module

Concerning mono-c-Si 190W module, the price of tier-1 suppliers stands at 4.40 CNY/W, and 4.0 CNY/W for tier-2 ones. As to mono-c-Si 245W module，the price of tier-1 suppliers is at 4.85 CNY/W, and 4.35 CNY/W for tier-2 ones. In terms of poly-c-Si 230W module, the price of tier-1 suppliers has reached 4.0 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 4.5 CNY/W, and 4.1 CNY/W for tier-2 ones. As to mono-c-Si 250W module, the price of tier-1 suppliers is at 4.90 CNY/W, and 4.5 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.

While market pricing remains stable, trading conditions have not improved, and the majority of low-tier manufacturers have been cutting down on production. There is an apparent inventory built up in European ports, which is also adding pressure on domestic trading. It is suspected that companies that can remain in a stronger position financially than their counterparts will become choice of preference for buyers, who will consider performance of each company under conditions like the outcome of the EU investigation.

Tier-1 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