Photovoltaic price reaches below one yuan

The second round of bidding for various projects for photovoltaic power plants in the country was released. The lowest price was generally between 0.8 and 1.0 yuan. The lowest bid price is distributed between 0.8 and 1.0 yuan. If the expert group determines that the price is not lower than the cost, the lowest price will become the bid price. The construction period of the demonstration project is two years, and the state-owned enterprises can withstand low investment returns of more than 10 years, and the squeeze effect on private enterprises is obvious. As the domestic PV market accounts for about 5% of the global market, short-term low-price competition will have little impact on equipment manufacturers. In the long-term, the cost reduction of photovoltaic power generation is a general trend, and domestic and international market capacity is still at a high speed. As a result of growth, all PV equipment vendors have room for growth, and the pressure for industry consolidation is still not great.

Polysilicon and wafer prices continue to rise, and the inflection point is expected to be near early next year. Solar cell capacity expansion is relatively easy, but upstream polysilicon and silicon wafers are limited by the speed of expansion, and cannot quickly increase the volume of shipments, resulting in a shortage of capacity at this stage, and the entire industry chain has begun to increase prices. In the third quarter, the price of polysilicon and wafer continued its upward trend in the second quarter. The current spot price is around US$75/kg. We believe that the price will peak at the end of the year or early next year, with the top at less than US$100/kg. With the release of polysilicon production capacity and the fall in downstream demand, polysilicon prices are expected to have revision pressure in 2011.

A number of photovoltaic listed companies announced the second quarter report and their business performance was optimistic in the second half of the year. LDK, YGE, TSL, and STP announced the second quarter report. Benefiting from strong demand for photovoltaics this year, shipments of photovoltaic modules have generally increased, and corporate profitability has been restored. It is expected that the revenue in the third quarter and fourth quarter will continue to increase, and the profitability will also be better than the first half of the year.