Commentary:Zero export tariff on China-made solar wafers likely to push down global wafer prices Jackie Chang,DIGITIMES,Taipei[Friday 11 May 2012]China-based solar firms have been demanding the government cut export tariffs on solar wafers to zero and allow polysilicon to be exported to international markets.This is likely to cause further price drops for the two products.
According to Digitimes Research,spot prices of solar wafer and polysilicon have remained low despite demand from Europe being better than expected.Digitimes Research said the spot price of polysilicon in Greater China from April 30-May 4,2012 was US$22.5/kg.Spot price of solar wafers over the same time period were US$0.89/unit for 125 mono,US$1.44/unit for 156 mono,and US$1.07/unit for 156 multi.Spot prices for solar wafers at the beginning of the month were US$0.95/unit for 125 mono,US$1.48/unit for 156 mono,and US$1.13/unit for 156 multi.
If the China government allows polysilicon and solar wafer firms to export products without tariffs or restrictions,the massive volume will likely crush prices in the global solar market.On the brighter side,this could help to lower production costs for solar cell makers.According to PH Chang,president and CEO of Taiwan-based solar cell maker Motech,the cost of solar wafers accounts for 70%of the total cost of a solar cell.
Nevertheless,solar wafer firms have been suffering the most in the recent downturn of the market.If prices dip further,players will likely be forced out of the market.With fewer players,the market may finally return to equilibrium where price remains stable.
Solar wafers account for the majority of solar cell production costsPhoto:Jackie Chang,Digitimes,May 2012