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Solar Market: 4Q demand probably unable to reverse oversupply situation

Upstream and downstream solar companies are holding negotiations regarding the fourth-quarter price, with the most important determination factor being price of polysilicon.

Upstream and downstream solar companies are holding negotiations regarding the fourth-quarter price, with the whole supply chain price trend going down. However, the most important determination factor is the price of polysilicon.
GCL-Poly Energy Holding Ltd., said that the price will be reduced to meet market needs, which will have a negative influence on solar silicon and battery companies, who are unable to offer polysilicon independently.
According to industry sources, it is predicted that the prices of solar silicon wafers – the current mainstream product of the Chinese market – will depreciate to USD 1.6 in the fourth quarter from the current price of USD 1.80-1.85.
In addition, predicted demand of the fourth quarter will exceed that of the third quarter, due to the further decrease of incentive measures in 2012. Nevertheless, the demand of the fourth quarter will not be able to solve the present over-supply situation.

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