Global solar demand to remain strong in second half of 2015,NN EnergyTrend

Second- and third-tier polysilicon manufacturers will leave the supply chain as oversupply becomes critical in the first half of 2016, according to EnergyTrend

25.08.2015:    Global demand for PV products will remain strong in the second half of this year, according to EnergyTrend, the research division of Taiwan-based consultancy TrendForce. The company has revealed that over 12 GW of PV modules were sold by Chinese manufacturers worldwide in the first six months of 2015. Of these modules, 6 GW went to India, Japan and US. This growth is expected to continue in the second half of the current year. For this reason, EnergyTrends forecasts that Chinese module producers will expand their production capacity outside of China , due to the trade disputes with EU and US, and that they will locate their new production facilities mainly in emerging markets. According to TrendForce, this overseas expansion will lead once again to overcapacity in the market, thus disrupting the »supply-demand equilibrium that has been gradually formed in the recent period.« Especially second- and third-tier polysilicon Chinese polysilicon producers will be affected by market overcapacity in the first half of 2016. The company estimates that polysilicon prices will be under a great pressure not to rise above the 125 CNY per kg threshold. »The market will again be too competitive for second- and third-tier domestic manufacturers that initially anticipated to profit from a bigger price increase following the end of process trade. As for foreign polysilicon companies, they will reduce their capacities as they are shut out the Chinese market due to high tariff,NN« stressed EnergyTrend in its report. © PHOTON