According to “Nikkei Electronics” report, according to U.S. Solarbuzz introduced, although a reduction in the solar battery production plans, but still well-known Chinese companies plan to maintain production in accordance with annual supply. If the second half of 2011 continued to produce according to plan, then the amount of solar modules will supply than demand exceeds 4.4GW.
Current solar battery module production continues to remain a state of excess, as the current factory supply price fell 33 percent in 2010. Affected by the price decline, the second quarter of 2011, known solar battery manufacturers, foundry providers, and silicon vendors chain gross margin fell by 50% or more.
Inventories due to price decline probably will not stop. Crystalline silicon solar module factory supply price, is expected in the fourth quarter of 2011, the chain fell 18%. Stimulation by this price, it is estimated the price of thin-film solar battery modules will substantially decline.
According to Solarbuzz introduction, module prices down to draw the positive effect of market demand has begun to appear, but later than expected. Craig Stevens, President of Solarbuzz warned, “is expected in early 2012 the German power price will be down 15%, if the overestimation of future demand, then the stock value of the assets will be further reduced.”
Solar battery manufacturers are under preparation so that the unit production capacity in 2012 compared with 2011 increased by 50% or more. However, the projected demand will only increase about 25%. Stevens said, “This solar battery with a year ago caused the price collapse of the whole supply chain, supply and demand are strikingly similar. As the profit margin has reached its apex, so the 2012 mergers and bankruptcies will increase further.”
According to reports, if not the smooth progress of production adjustment, then the end of 2012 inventory of solar modules will surge to nearly 22GW. To maintain the same level with the end of 2011 the number of days of inventory, you need around 11GW of production adjustment.
