The Third-Quarter Financial Performance of Taiwan's Solar Firms Should Be Better

The third-quarter financial performance of Taiwan's solar firms should be better than the in second quarter due to relatively stable control of materials, according to industry sources. However, the fourth quarter is still unpredictable as market expectations might push firms to clear out inventories. If that happens, prices will continue to show significant drops. The improvement in financial performance in the third quarter compared to the second quarter is likely due to a return in demand in July causing some mono-crystalline solar wafers and cells to experience small price hikes and shortages. Furthermore, the price of solar wafers has been dropping significantly in the third quarter helping solar cell firms to achieve effective cost-reductions . Industry sources pointed out this wave of low demand has been able to weed out firms that are less competitive in terms of technology and conversion efficiencies. The price of solar wafers continues to fall. The price of mainstream 6-inch multi-crystalline solar wafers was around US$2.20/unit at the end of the second quarter. The price dropped to US$1.80/unit at the end of the third quarter. The price is expected to continue falling to US$1.60/unit in the fourth quarter as the market holds a pessimistic view of demand. Again, solar wafer firms have been caught between rigid polysilicon quotes and falling product prices. Some solar wafer firms have been selling polysilicon on the spot market, said industry sources, who added that the losses incurred by selling polysilicon are less than from producing and selling solar wafers. Source: www.digitimes.com