After the PV market underwent a period of oversupply, prices have gradually hit rock bottom since 2013. Increased market demands will support prices from dropping further. Also, in the short run different supply chain segment costs have entered a bottleneck. Demand will still grow in 2014 and all first-tier manufacturers can maintain higher utilization rates in the entire year, noted EnergyTrend, a research division of TrendForce. In addition, the US-China anti-dumping and countervailing issues¬¬ will continue to affect the production utilization of Chinese and Taiwanese manufacturers. Overall, having wide regional market strategies is key to success in 2H14 for polysilicon to module manufacturers.
Recent changes in the PV market have led to China’s waning demands at the end of March 2014, while further observations are required for orders in April this year. These have led to lowered price quotes for relevant products. In other words, although there were few changes in April and May orders, price quotes have fallen. Thus, manufacturers are still conservative about price trends in Q2, analyzed EnergyTrend.
Recent wafer spot price reflected a downtrend. Price quotes for high-efficiency multi-si wafer dropped from US$1.04-1.05/piece in mid-March to US$1.02-1.04/piece lately. For normal-grade products, quotation also declined from US$1.01-1.0/piece to US$1.0-0.98/piece.
Recent changes in spot market trends have led to substantial decline in PV products trading prices. Price quotes for polysilicon to modules dropped around 1%-3%, noted EnergyTrend, a research division of TrendForce. Whether demand fluctuations at the end of March implies weaker 2Q14 demands still remains to be seen.
Japan’s Ministry of Economy, Trade and Industry (METI) announced it will lower PV Feed-in Tariff (FiT) in fiscal year 2014. For PV systems with capacity of 10kW and above, commercial PV FiT will be revised down from 36 yen per kW (tax-excluded) to 32 yen, while residential FiT is to be dropped from 38 yen to 37 yen.