Industry Sources Think The Low Price Tactic to Stimulate Demand No Longer Works

As the industry expected, the price of solar products after PV Taiwan 2011 has continued to fall. However, due to the traditional low season, industry sources think the low price tactic to stimulate demand no longer works. Industry sources pointed out that despite the market's belief that polysilicon firms have been facing inventory build-ups, the price of polysilicon continues to be rigid at around US$42-43/kg. Some international first-tier solar wafer and cell makers did not participate in PV Taiwan 2011. Industry observers think this means that weak market conditions exist in Taiwan's solar supply chain. Many first-tier China-based solar firms also refrained from participating. Industry observers further noted that as the cooperation between solar firms in Greater China increases, gross margins for Taiwan-based solar firms will fall more rapidly, showing the difficulties for Taiwan's solar industry to survive on its own. Industry sources indicated there is a lack of government support for Taiwan's solar industry and said they hope the government can create more domestic demand instead of using the growth of the industry as a slogan. Source: www.digitimes.com