According to EnergyTrend, a research division of TrendForce, as inventory levels remain high and demand is not strong, PV price continues to decrease gradually. However, the lower prices have not enticed buyers and stimulated demand. Based on the current European and U.S. market outlook, it is likely to be a harsh winter for the PV industry.
Currently, as price continues to fall and demand shows no signs of picking up, many major manufacturers are aiming to increase international sales. In addition to extending payment schedules, makers are providing financial support for downstream expansion, which will in turn result in increased shipment volumes. Thus, mid to small-scale manufacturers will face even more challenges on the market; not only must they deal with their own cost management, but they are unable to contend with financially stable major macnufacturers. As such, their short-term operational goals are to hold onto their cash and lower inventory levels in order to make it through the cold winter.
The Solar Power International exhibition came to a conclusion last week, but the news from the event should keep the solar industry talking for a while. For instance, the anti-dumping appeal headed by Solarworld leader and bankruptcy protection rumors, all indicators of China’s position in the solar market. While China has a large market share, they are still stuck in a state of oversupply and low prices. Amongst the many market rumors and varying opinions, perhaps the only consensus is that winter is indeed coming for the solar industry.