In view of increasing demand from Japan because feed-in tariff (FIT) rates will be lowered soon, Taiwan-based solar module makers plan to adjust their quotes up or down in early February, according to industry sources.
At the end of the fourth quarter of 2012, average quotes for China-based solar modules were around EUR0.45/watt (US$0.59/watt).
According to China-based material suppliers, due to rising demand from Japan and China, some tier-one vertically integrated solar makers are seeing January capacity utilization rates rising to 80% while some are operating at full capacity. Rising demand has been giving upstream solar makers confidence about increasing prices.
Taiwan-based solar module firms are also seeing healthy orders and capacity utilization rates. Some firms are experiencing undersupply. Despite the fact that Taiwan-based solar module firms have small global market shares, Japan-based firms have been relying heavily on Taiwan's supply chain through OEM orders.
Solar firms pointed out that firms in upstream segments suffered relatively large losses in 2012 compared to downstream peers. Some module firms are likely to report breakeven or profitability in 2012. Upstream solar firms hope this wave of price increases can extend to downstream segments.
