Global PV demand to rebound in 2Q 2012, prices unlikely to rise

The Chairman of Taiwan-based Sino-American Silicon Products (SAS) has forecast a rebound in the global solar market in the second quarter of 2012, although product prices are unlikely to rise along with rebounding demand.

The global solar market will, according to chairman MK Lu of Taiwan-based Sino-American Silicon Products (SAS), rebound in the second quarter of 2012, although product prices are unlikely to rise along with rebounding demand.
According to Lu, current global solar product capacity is around 50GW, but demand is only around 17GW. By the end of 2011, demand should be able to reach 20GW still behind capacity expansions. This imbalance of demand and supply has been causing 50-60% decreases in prices of solar wafers and cells.
Lu forecasts that prices of solar wafers and cells should not decrease further, and that firms will begin to generate profits once the price of polysilicon solar wafers comes back to USD 1.60/unit.
The rebound in demand will be more apparent in second-quarter 2012, he added, but prices are unlikely follow.