Taiwan solar cell makers hoping price drops will ease in December

Writer:Nuying Huang; Jackie ChangWednesday, Nov 14 2012

(DIGITIMES)-Taiwan-based solar cell makers expect China-based competitors to stop dumping their products in December when the off season begins, helping stabilize prices, according to industry sources.

Solar cell prices have continued declining from US$0.48/watt at the beginning of the third quarter of 2012 to US$0.35-0.38/watt at the end of the quarter, US$0.35/watt in mid-October and further to below US$0.35/watt currently mainly due to continued dumping by second- and third-tier China-based makers, the sources said.

The China makers have been eager to clear their stocks mainly because the European Union has not yet announced a retroactive date for its anti-dumping investigation, the sources added.

Oversupply in upstream polysilicon has also contributed to the declines in cell prices. Spot price of the material continues to fall causing downstream firms to lower price continuously. Tier-two and tier-three solar cell and module makers in China have been clearing out inventory and dumping products, which has been affecting their peers both in China and Taiwan.

Europe-based customers have been receiving low quotes from China and reportedly using the low quotes to demand Taiwan-based firms to lower price. Taiwan-based firms noted that orders with unreasonable price have been rejected.

If the European Commission decides to levy heavy punitive tariffs on China-based firms, tier-two and tier-three makers in China are likely to halt production or even exit the market, unless the firms have good relationship with the government and domestic financial institutions.

Source: DIGITIMES

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