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Rising demands, reduced supply cause PV spot price increase

Posted: 25 Mar 2013     Print Version  Bookmark and Share

Keywords:spot price  grid-connected installations  PV supply chain 

EnergyTrend sees that the actual demands from China, Japan, United States, India and other emerging countries will grow in 2013. According to the market research firm's "Gold Member Report," global demand for modules will top 30GW (approximately 32-34GW, a 7 per cent YoY increase). However, global grid-connected installations for this year may not grow significantly compared to last year's.

Because to the increased demands and reduced supply, the PV spot price and utilization rate is expected to rise.

EnergyTrend indicated that the utilization rate of each segment of the PV supply chain will increase in 2013 due to the following reasons:

Increased demands, reduced supply
Demand in the module market is expected to increase in 2013; though the amount of grid-connected installation remains still, the actual demand would be around 32GW-34GW. Therefore, the demands of each segment will increase, and since supply is not increasing, the utilization rate will rise.

Clearer boundary between brands and OEMs
In the current market, first-tier manufacturers are not eager to enhance capacity and second-tier manufacturers may receive OEM orders from first-tier manufacturers, thus most of the manufacturers that meet market requirements would be able to effectively increase the utilization rate.

Uncompetitive manufacturers phased out
Due to the policies that regulate modules and the rise of self-consumption systems, manufacturers that lack technology to enhance cell efficiency may be phased out. On the other hand, if products were sold for a price under cost for a long time, new manufacturers and small manufacturers without cost advantage may also be eliminated.

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