EURO PV MARKET THREATENED

Downstream Manufacturers Hesitant, Multi-Si Price of US$45/Kg in Sight
2011 September 14 (Energy Trend)

"…[T]he German market’s installation volume for June to August was approximately 2GW, with a projection of around 1GW for September. Thus, Germany is expected to see another wave of downward adjustments in the middle of the year, estimated at over 10%. Subsequently, yearly subsidies will show an overall decrease of over 20% for 2012. As the European market currently relies heavily on Germany and Italy for support, EnergyTrend expects that the aforementioned developments will have a significant impact on the growth of the European market…"

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"Looking towards Q4, EnergyTrend expects the following target prices: multi-Si wafer US$1.85-1.75/piece; battery US$0.7-0.65/Watt; module US$1.0/Watt. EnergyTrend believes that as the market is not conducive to demand recovery, future price decreases are inevitable and the Q4 profit outlook for manufacturers is unfavorable. As middle manufacturers’ profits suffer, manufacturers that were more profitable in 1H11 may be pressured to satisfy clients by adjusting price."