China's PV product prices rose for the first time in 4 years

According to a report by IHS (Information Handling Services, Inc.), a global key information, products, solutions and service provider, on April 23, the average selling price of China's crystalline silicon PV modules in EU countries rose by 4% in March 2013. This is the first time that China's crystalline silicon PV module prices have risen since January 2009.

On April 25, an industry analyst told reporters that the dawn of the domestic PV market is far from coming, and industry consolidation is still in progress. The price increase of EU components is of little significance to the domestic PV industry. The real decision on the domestic PV market should be the EU's "double-reverse" preliminary ruling in early June and the follow-up China's "double-reverse" policy on imported polysilicon.

Expected to continue to rise in the next 3 months

HIS's iSuppli "Photovoltaic Module Price Tracking Report" predicts that prices will increase by 1% in April 2013, and the average price increase will reach 4% in the next three months. The unresolved “double-reverse” tax rate is a major factor in price increases.

IHS senior analyst Glenn Gu said that PV module manufacturers have been struggling in this lucrative market for many years due to severe oversupply of PV products and a sharp drop in prices. Now, there are clear signs that the balance of supply and demand in the photovoltaic market is gradually improving, and the price of photovoltaic products has stopped falling and began to rise.

According to GlennGu, sales of photovoltaic products in the Asian market continue to rise, making global demand catch up with supply. On the other hand, EU anti-dumping litigation has had a negative impact on Chinese suppliers' shipments, which has also contributed to rising prices.

IHS predicts that by the end of May 2013, China's PV module prices will reach 0.53 euros per watt (about 4.27 yuan), compared with March 2013 prices rose 5% to 6%. The agency said that all Chinese PV module manufacturers' quotations have now risen.

In addition, a report by pvXchangeGmbH, a photovoltaic inverter company based in Cologne, Germany, reported that in March 2013, the price of crystalline silicon photovoltaic modules in China had risen by 3.8% to 0.55 euros per watt.

Domestic PV market still has variables

Domestic PV manufacturer Wuxi Suntech has been bankrupt and reorganized, and the increasing financial crisis has also worried investors whether LDK will become the next Suntech. For the first time in four years, the price of PV modules in China has risen. Does this cold industry bring a little warmth?

Domestic market researchers are not optimistic about this. Yin Lei, a new energy industry analyst at China Merchants Securities (Hong Kong), told reporters that it is not surprising that the price of PV modules in the EU market has risen slightly since March, because the European Union’s “double-reverse” retrospective period for Chinese PV products is from March 6 to June. 6th.

Yin Lei pointed out that Chinese component manufacturers are worried that once the EU announces the "double-reverse" tax rate in early June, an additional tax rate will be imposed on the imported components for the three months. In the EU market, the supply of relatively low-cost Chinese components is decreasing, and the total price increase is inevitable. It is expected that the rise in component prices in the EU market will continue until the end of May, and the follow-up will depend on the EU's “double-reverse” tax rate on China.

Yin Lei said that the price increase of EU components is of little significance to the domestic PV industry. The dawn of the domestic PV market is far from coming, and industry consolidation is still in progress. The real decision on the domestic PV market should be the EU's "double-reverse" preliminary ruling in early June and the follow-up China's "double-reverse" policy on imported polysilicon. Because of the retrospective relationship, the shipments of domestic component companies in the second quarter are more likely to decline.

What the domestic PV companies need to do most is to develop new markets such as the United States, Japan, and South Africa, India, and Latin America, while waiting for the EU and China market PV policy boots to fall, while digesting battery component inventory through photovoltaic power plants, and reducing their own liabilities. Rate, Yin Lei stressed.

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