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Trina Solar Limited Message Board

  • theprincipal49 theprincipal49 Apr 26, 2013 3:18 PM Flag

    Upward pressure in prices worldwide as the Chinese are shipping less to Europe causing shortage.

    The rise in worldwide demand is arising from booming sales in China and Japan. Both countries at present are soaking up massive volumes of modules, helping boost worldwide pricing.

    Japan commands a particularly high module ASP, which is pulling up pricing in Europe and worldwide.

    Meanwhile in China, the government is expected to reduce its feed-in tariff (FIT), which serves to incentivize solar installations and drive the sales of modules. The Chinese incentive is spurring faster adoption of solar systems while the FIT terms are still attractive.

    However, as part of its antidumping action, the EU in early March commenced compulsory registration for imported Chinese solar products. This made many Chinese suppliers unwilling to ship or clear modules through customs to the region. In turn, the development triggered a significant solar module shortage in major European markets such as Germany and the United Kingdom.

    Along with increasing administrative costs, the phenomenon has driven up prices in Europe.

    Positive momentum

    The upward price pressure is expected to continue, although the rate of increase is slowing in April compared to March as the rising price starts to dampen demand.

    However, looking further ahead into May and June, Chinese module prices in the EU are expected to climb rapidly, driving up overall average module prices globally.

    With many Chinese module suppliers cutting back shipments or withdrawing from the market ahead of the preliminary EU solar anti-dumping decision to be announced in early June, the module shortage in Europe is expected to intensify. Average Chinese module prices by the end of May are expected to rise from 5 to 6 percent compared to March, reaching $0.691/Wp or EUR 0.53/Wp.

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