China-based PV module makers have asked Taiwan-based crystalline silicon solar cell makers to decrease prices to the same level offered by China-based makers, but the Taiwan makers do not plan to accept mainly because the cost of silver conductive paste, which accounts for 5-10% of solar cell production costs, have risen significantly, according to industry sources.
First-tier China-based solar cell makers have quoted EUR0.28-0.29/W (US$0.37-0.39) for exports to Europe, still 5-7% lower than prices quoted by Taiwan makers, the sources indicated. China-based PV module makers therefore have demanded that Taiwan-based solar cell makers reduce prices to the same level, the sources said.
As international silver prices have risen from US$18/ounce in July 2013 to US$24/ounce currently, suppliers have hiked silver conductive paste prices significantly, the sources noted. Consequently, Taiwan-based solar cell makers will see a large decrease in profitability if they lower quotes.
In addition, Taiwan-based makers mostly produce high energy-efficiency and PID (potential induced degradation)-free solar cells which are superior to China-based makers' products, and therefore higher prices are reasonable, the sources analyzed. Taiwan-based solar cell makers have seen increasing orders from the US and Japan since the beginning of the third quarter, resulting in a decreasing reliance on China-based PV module makers, the sources indicated.
