According to EnergyTrend, the green energy research division of TrendForce, manufacturers are experiencing mediocre market condition where purchase orders plunge, which caused suppliers’ inventory levels to continue rising. Related manufacturers noted that the bleak market outlook results in the persisting price downtrend as the industry believes prices have not hit the rock bottom yet. During the recent price adjustments, EnergyTrend believes wafer makers suffered from the most prominent downturn – aside from the pressure from upstream and downstream players, the price competition among multi-Si wafer makers fueled the downtrend. EnergyTrend expects 2012 to be a difficult year for wafer makers as no signs of rebound is in sight.
According to the recent financial reports, wafer makers’ financial situations could not get any worse. GCL saw a loss of US$34.1 million in its solar business; ReneSola suffered from a US$75 million loss; Korean wafer maker Nexolon saw a loss US$60.08 million from 1H12; Taiwan’s Green Energy Technology saw a loss of US$58.8 million. First-tier companies from Taiwan, China, and Korea all underwent losses. Although manufacturers have been striving to lower manufacturing costs, the cost per wafer still ranges from US$1.05/piece to US$1.14/piece, with the spot price dropping to US$1.03/piece. As a result, manufacturers are selling at a loss. Looking towards 2H12, with no upswing in sight and the on-going solar trade wars amongst China, the United States, and Europe, 2H12 will see the slump persist and prices continue plunging.