Leading Taiwan-based makers of polysilicon solar wafers, viewing that orders are on the rise and current prices are lower than production costs, are negotiating with clients for an upward adjustment in quotes from US$1.25 per 6-inch wafer currently to US$1.30 in March, according to industry sources. Taiwan-based solar wafer firms have been trying to increase quotes from December 2011 as demand has been showing signs of a rebound. As the current price is lower than production costs, solar wafer firms hope the increase will provide them with some breathing room. The low price of solar wafers has been causing many firms to exit the market. Germany-based Schott Solar announced that the firm will focus on solar modules and systems in the beginning of 2012. The firm no longer desires to invest in upstream segments. Norway-based integrated solar firm REC has been adjusting its capacities for solar wafer and cells since 2011. LG Electronics has is said to have temporarily put on hold a solar wafer capacity expansion investment of KRW400 billion (US$356 million). LG halted polysilicon investments of KRW491 billion in 2011. Altogether, the firm has suspended investment plans into upstream segments worth close to KRW1 trillion. China-based solar firm GCL-Poly also decided to terminate plans to expand capacity and add new plants in 2012. Taiwan-based solar firms have been experiencing increasing orders but terms have been less than desirable. Industry sources noted that orders from China-based firms tend to have tough demands such as high conversion efficiency products for a low price. Solar firms indicated that these types of orders do not help in generating profits. Nevertheless, the orders have been helping firms to increase capacity utilization. Not only do the orders from China-based firms have undesirable demands attached to them, orders from Europe-based solar firms tend to extend payment terms from 90 days to 120 days. Source: www.digitimes.com
Source:
http://www.digitimes.com/news/a20120221PD209.html?mod=2
